The company plans to cancel DVR shares, which have been publicly traded since 2008, and replace them with common stock. For every 10 DVR shares, investors will receive 7 common shares.
The company had previously set September 1 as the deadline. registration date for this stock exchange.
“In accordance with Regulation 3.1.2 of the National Stock Exchange (Capital market) Pursuant to Trading Regulations Part A, notice is hereby given that the following security will be suspended from trading effective August 30, 2024 (i.e., trading closing time on August 29, 2024),” the company said in a filing with the exchanges.
Tata Motors on Tuesday also said that the company has received approval from the National Company Law Tribunal (NCLT), Mumbai Court. The Court approved Tata Motors’ plan to reorganise its shareholding structure by cancelling its Ordinary ‘A’ Shares and issuing fresh Ordinary Shares in exchange.Read also: Sebi issues warning against SME stocks as IPOs stun investorsIn the last 2 years, Tata Motors DVR stock has given a whopping return of 223.6%, while in the last one year, the stock has gained 86.6%. In the last 6 and 3 months as well, the stock has given a return of 17% each to its investors. Tata Motors DVR stock is a unique type of stock. equity shares offering differential voting rights. Tata Motors first introduced these shares primarily to raise capital without diluting the voting power of existing shareholders.
DVR shares offer fewer voting rights compared to common stock: typically, each DVR share has one-tenth the voting power of a common share. To compensate for this reduced voting power, DVR shares typically offer a higher dividend than common stock, making them an attractive option. option for investors seeking income rather than control of the company.
Tata Motors DVR shares closed unchanged at Rs 746 on BSE today.
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