DVR Equity shares

Are you looking to carry out a hostile take over?

Do you have the capital to do so?

do you want to take part in the workings of the company?

If your answer to these questions is yes.  Then this post is not for you. DVR stands for Differential Voting Rights. This means that the shares have different rights in terms of voting on any agenda proposed by the company. In India the SEBI does not allow companies to create shares with higher voting rights. This means that these shares always have lower voting rights if they are listed on the NSE or the BSE.

DVR shares may have a different share price and they are usually cheaper than ordinary shares of the same company. For example: tata motor is priced at 455 and its DVR is priced at 283 (both price on close as of 12.6.2017). Although they are priced differently the graphs are the same. This means that the news that affects one affects the same in the same way. And both shares fluctuate accordingly. Very often the percentage of change is the same however sometimes there can be a marginal difference between them.

The biggest advantage of DVR shares to small investors is that they give a higher rate of dividend. This is done to provide a little incentive for investors to move to DVR shares.

Some DVR shares listed on NSE/BSE are:-

Tata motors DVR

Jain irrigation DVR

Gujnre DVR

Future Enterprises ltd DVR