The DVR full form is Differential Voting Rights. These are a special type of equity shares that offer different voting rights compared to ordinary shares.
Typically, DVR shareholders receive fewer voting rights but enjoy higher dividends or additional financial benefits. Companies issue DVR shares mainly to raise capital without giving away significant control to outside investors.
Detailed Explanation
The DVR meaning refers to shares that balance ownership and control within a company. They are designed for investors who prefer steady financial returns over decision-making rights.
For example, a company may issue regular shares with one vote per share and DVR shares with one vote for every ten shares.
In exchange, DVR shareholders might receive a higher dividend payout: say 10% more than regular shareholders. This allows promoters to retain control while rewarding long-term investors.
Examples of DVR Shares in India
In India, companies like Tata Motors and Jain Irrigation have successfully issued DVR shares. These shares are listed and traded on major stock exchanges such as the NSE and BSE.
Investors who are interested in earning higher dividends often find DVR shares appealing, especially when they are less concerned about having a say in company decisions.
DVR Share Price
The DVR share price functions similarly to that of regular equity shares and fluctuates based on market performance and company results. However, DVR shares often trade at a slight discount compared to normal shares due to their limited voting power.
Investors should keep an eye on market movements to identify opportunities for value buying. The DVR shares list can be found on official stock exchange websites and financial platforms.
This list helps investors compare companies offering DVR shares, analyse their price trends and make informed investment decisions.
For those seeking consistent returns with limited voting rights, DVR shares can be a practical addition to a balanced portfolio.
