Tata Motors Becomes Most Valuable Auto Firm By Mcap, Races Past Maruti Suzuki

Tata Motors also announced its plans to raise prices of its passenger vehicles, including electric vehicles by 0.7 per cent from February 1, a move that is expected to boost its margins.

At 3 pm on Wednesday, shares of Tata Motors jumped 2.55 per cent to Rs 881.20 apiece on the BSE.

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Racing past Maruti Suzuki India, another home-grown auto major Tata Motors on Tuesday became the country's most valuable auto firm by market capitalisation (Mcap) by combining the company's valuation as well as the DVR shares. Shares of Tata Motors climbed 2.19 per cent to settle at Rs 859.25 apiece on the BSE. During the day, it jumped 5.40 per cent to reach its 52-week high of Rs 886.30.

At 3 pm on Wednesday, shares of Tata Motors jumped 2.55 per cent to Rs 881.20 apiece on the BSE. Tata Motors Ltd - DVR stock gained 1.63 per cent to Rs 572.65. However, shares of Maruti dipped 0.36 per cent to Rs 9,957.25.

The combined market valuation of Tata Motors (Rs 2,85,515.64 crore) and Tata Motors Ltd - DVR (Rs 29,119.42 crore) stood at Rs 3,14,635.06 crore. This was Rs 1,576.56 crore more than Maruti's Rs 3,13,058.50 crore valuation. Tata Motors was the biggest gainer among the Sensex and Nifty firms.

DVR (Differential Voting Rights) shares are like ordinary equity shares but with differential voting rights. Companies issue DVRs for several reasons such as prevention of a hostile takeover and to bring in retail investors. 

Tata Motors' record sales in its luxury Jaguar Land Rover (JLR) segment in Q3 and plans to hike prices for its passenger vehicles have sparked hopes of a solid Q3 performance from the automaker. Tata Motors also announced its plans to raise prices of its passenger vehicles, including electric vehicles by 0.7 per cent from February 1, a move that is expected to boost its margins. The automaker is slated to release its Q3 earnings on February 2.

The carmaker announced earlier this month that its total worldwide wholesale sales in the third quarter of fiscal year 2023-24 reached 3,38,177 units, up 9 per cent year-on-year. In the same period, the company's commercial vehicles and Tata Daewoo line had global wholesales of 98,679 units, indicating a 1 per cent year-on-year rise.