Essar Energy Plc, the London-listed energy arm of India’s Essar group, said on Wednesday that it is launching an American Depository Receipt (ADR) programme. Each ADR will represent two ordinary shares of Essar Energy and will be traded on the US Over-the-Counter market.
“Essar Energy believes that the establishment of the ADR programme will benefit existing shareholders by making its shares more accessible to US investors and providing Essar Energy with increased visibility within the US market,” the company said in a release.
The ADR program will not entail issuance of new receipts with equity shares of the company as underlying security, but will help existing shareholders sell their shares to US investors in the form of depositary receipts, a company spokesperson said.
The Bank of New York Mellon Corp. has been appointed as the depositary bank for the ADR program