Actually, there was no ‘issue’, the person asking the question did not know how GDRs work. A GDR is just a group of equity shares bundled together (5 shares to 1 GDR in this case), so when GDRs are issued, the underlying shares already become part of the issued and paid-up equity capital. Conversion of GDR into equity shares does not result in any new dilution. And there is no pre-defined “conversion price” since the conversion is just an exchange of x GDRs for 5x equity shares, money is not involved.
Subscribe To Our Free Newsletter |