See, Firstly, If it was really unfair to the existing shareholders, why would the Promoters (the Nanda family) allow this? They are not getting the new preference shares, Kubota is. How would they benefit from it?
Secondly, I think even if this plays out to be unfair somehow this could lead to increase in the open offer price, as I don’t think Kubota would want this deal deal to fall apart for a 3% premium (Rs. 2052), as is implied by SES.
So, I think this is going to be either a case of I win or I win big.