As the name suggest, Differential Voting Right (DVR) shares provide different right of ownership as compares to ordinary shares. They have been allowed to issue in India since 2001.Since then only 4 companies had issued shares with DVRs shares.
Shares with DVRs shares are considered as a new product in the equity market. There have been numerous benefits both to the companies and to the investors who do not exercise their voting rights. If we look from the investor point of view, then they can earn better return in lieu of surrendering their voting rights whereas a company can issued equity without diluting their equity stake.
