Tata Motors has fixed September 1 as the record date for the conversion of shares with differential voting rights (DVR) (also known as A-ordinary shares) into ordinary shares.
What Happened: “The company has set Sunday, September 1, 2024, as the ‘record Date’ for determining the holders of ‘A’ ordinary Shares who will be entitled to receive the new shares,” the Tata Group company said in an exchange filing. This means that investors will have to hold shares in Tata Motors DVR on September 1, to be eligible for the conversion.
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The company’s DVR conversion plan was approved by the shareholders in May, with 99.8% votes in favour. The DVR conversion plan is a step towards simplifying the company’s capital structure and providing equal voting rights to all shareholders.
The scheme, initially announced in July last year, involves issuing seven ordinary shares of Tata Motors for every 10 A-ordinary shares held. After this exchange, all outstanding A-ordinary shares will be cancelled.
Price Action: Tata Motors’ share price was down 0.97% to close at 1,087.70 on Monday. Tata Motors DVR shares closed 0.12% lower at ₹749.05. As of today’s closing, the DVR shares are available at around a 1.5% discount.
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