Tata Motors Ltd. announced on Tuesday that trading in A Ordinary Shares—also called differential voting rights shares—would be suspended from Friday on account of the scheme of arrangement of the company.
The company will cancel DVR shares, listed since 2008, by issuing ordinary shares. The automaker will issue seven ordinary shares of Tata Motors for every 10 DVRs held by investors.
Earlier, the company announced Sept. 1 as the record date for the swap of its differential voting rights shares with ordinary shares.
Tata Motors Ltd.'s decision to extinguish its listed DVR shares will have three major tax implications for investors.
Shares of Tata Motors closed 1.37% lower at Rs 1,077.20 apiece on the BSE, compared to a 0.02% advance in the benchmark Sensex.
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