New Delhi, Jul 26 (IANS): Tata Motors DVR is up more than 13 per cent in trade after the announcement of capital reduction by the company.

Tata Motors DVR is trading at Rs 423 up 13.43 per cent on BSE on Wednesday.

V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services said Q1 results of Tata Motors and their decision to cancel DVR shares and the good results of L&T and the share buy back news are sentiment positive, he added.

Tata Motors approved capital reduction of DVR shares at 23 per cent premium to the last closing price, resulting in 4 per cent EPS accretion (to close in 12-15 months.)

Motilal Oswal Financial Services said the company has proposed a scheme of cancellation of DVR shares by offering 7 Ordinary shares for every 10 DVR shares held by the shareholders, valuing DVR shares at a 30 per cent discount to Ordinary shares (well below historical average discount).

BSE Sensex is up 430 points in morning trade on Wednesday at 66,786 points.

L&T up by more than 3 per cent and Reliance Industries up almost 2.50 per cent are leading the market upmove.