Shares having differential voting rights (DVRs) issued by Indian companies have been quoting at sharp discounts to the ordinary shares, causing concern among holders over the restricted scope for capital appreciation. While only three companies - Tata Motors, Pantaloon Retail and Gujarat NRE Coke - have so far issued DVRs in India, there have not been many takers for these securities as the holders enjoy fewer voting rights than ordinary shareholders. This has restricted scope for improvement in valuation, prompting the promoters to exit, or to take such moves that would help boost liquidity in the counters, according to brokers.
Source: Economic Times
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