TVS Motor Company’s board has given a positive nod to the bonus issue of Non-Convertible Redeemable Preference Shares (NCRPS).
The share will be issued at 4:1 equity shares held as of the record date. TVS Motor will incur an expense of Rs. 1900 cr for this.
The issued NCRPS will come with a 12-month tenure and an annual coupon rate of 6%.
As the name suggests, NCRPS cannot be converted to equity shares and they do not have any voting rights.
In March, the company also approved an interim dividend payout of Rs. 8 per equity share. This is 800% of the face value per share and the overall cost to the company would be Rs. 380 cr.
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