BSE and NSE have approved the cancellation of ‘A’ ordinary shares (DVR i.e. differential weighting rights) and allotment of ordinary shares of Tata Motors. Tata Motors has given this information.
The exchanges also approved the scheme of arrangement for this between the company, shareholders and lenders.
‘Tata’ will eliminate DVR
For every 10 Tata Motors DVR shares, shareholders will get 7 shares of Tata Motors. Due to this, it is being speculated that Tata Motors is eliminating DVR. The company will convert DVR shares into ordinary shares.
Tata Motors DVR price
Tata Motors DVR had closed at Rs 474, up 1 percent on Thursday. Let us tell you that its share has increased by 100 percent in one year.
Know about DVR-
DVR shares i.e. differential voting rights shares are such shares which have special rights for voting and dividend. In fact, according to general rules, every stockholder of a company gets equal voting rights and dividend rights.
Such shares are called common or ordinary shares. Meanwhile the concept of DVR was introduced. In this, companies issue some shares in which voting rights are less than common shares.
In return, companies offer DVR investors higher dividends than common shareholders.
If you understand in simple language, those investors who want maximum returns from the company and do not participate in the voting on the decisions of the management of the company, the companies take a share of their voting rights by paying them more in the form of additional dividend. . This benefits both the company and the investor.
The special thing about DVRs is that DVRs are offered at a much lower price than common shares, so investors can take advantage of the company’s growth even with small amounts.
When was it launched in India?
Tata Motors first launched the first DVR in India in 2008. After which Gujarat NRE Coke, Future Enterprises and Jain Irrigation launched their DVRs.
