IndiaRetailBiz

“DVRs meet the different requirements of different shareholder groups and, with this issuance, we will be introducing a new financial instrument for the new economy.” — Kishore Biyani, CEO, Future Group.

Pantaloon Retail, the country’s biggest listed retailer, which is owned by Kishore Biyani-led Future Group and which besides Pantaloons also operates popular retail chains like Big Bazaar, Food Bazaar, and Central, among others, announced its decision to issue one bonus share for every 10 shares held with a difference. The new shares to be called B class shares will carry different voting and dividend rights than ordinary shares of the company.

While, class B shareholders will be entitled to 5% more dividend than their ordinary counterparts, the owners of these shares will also be entitled to cast one vote for every 10 shares held. Ordinary shareholders on the other hand are entitled to cast one vote for every share held by them.

“Differential Voting Rights (DVRs) have become a widely-used innovative instrument in global markets and, by coupling a bonus issue with a DVR, the company is offering another alternative to its shareholders,” said Kishore Biyani Pantaloon Managing Director, while announcing the decision.

Although, not prevalant in India, DVR is quite popular among global companies. Berkshire Hathaway, Google and News Corp. are some of the global companies that have issued different class of shares.