Under the proposed scheme, DVR holders will receive seven ordinary shares for every 10 DVRs held. This represents a 34% discount to the Tata Motors ordinary shares.

The entire process, which is expected to take between 12 to 15 months to complete, will simplify and consolidate the company's capital structure while preserving liquidity.

However, the scheme is subject to approval from various entities including the stock exchanges, the Securities and Exchange Board of India, 75% of DVR holders, the majority of minority shareholders, creditors, and the National Company Law Tribunal.

The cancellation of DVR shares will be a taxable event for shareholders. However, Tata Motors has assured that the company will settle the withholding tax.

The 'A' Ordinary Shares were first issued by Tata Motors in 2008 and subsequently in a further QIP in 2010 and rights issue in 2015. DVR holders enjoyed distinct privileges in terms of voting and dividends compared to ordinary shareholders. With only 1/10th of the voting rights, DVRs granted their holders a unique advantage. Additionally, DVR holders were entitled to a dividend payout that is five percentage points higher than that of ordinary shares.