What is a Non Pari Passu (NPP) share?
In case a company issues new shares during a financial year, these shares, unless specified otherwise, are entitled only for pro rata dividend in respect of the financial year in which these are issued. These shares are known as NPP shares, which like the ordinary shares are eligible for only a part of the dividend. If you hold more than one class of shares for a single stock, the holdings appear separately in your Demat Account as they have different ISIN No. – a number used for identification of the various stocks.
