The swap of 10 Tata Motors DVRs for 7 ordinary shares is projected to increase the EPS from 5 to 5.90, assuming constant earnings.
"if DVRs are cancelled and for that we have taken a very simple example okay let's take this example assume that the company has made a profit of 100 rupees company has 10 DVR and 10 regular shares so how will the EPS be calculated this 10 + 10 will be the denominator which is 20 is the denominator and numerator is 100 so EPS will be five as simple as this right now if these 10 DVR so we said 10 will be normal shares and 10 will be DVR now these 10 DVR are going to vanish so how much shares are remaining only 10 regular shares but wait against these 10 DVRs 7 will be issued so 10 normal plus 7 freshly issued will make it to 17 okay so now 100 rupees will be divided by 17 100 was the earning number of shares will now be 17 and that is why the EPL EPS will look improved at 5.90 so you can imagine earlier instead of 5 EPS now it will come to 5.9 EPS will be definitely looking optically better"
