BackTata Motors has no plans to list shares on NYSE
Tata Motors' ordinary and Class A shares are materially undervalued, says Knight Assets
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Mumbai: Knight Assets and Co., which advises funds owning stock in Tata Motors Ltd, is pushing India’s largest auto maker to list its Class A shares on the New York Stock Exchange (NYSE) to boost shareholder value.
Tata said it had no plans to list these shares in New York presently.
Tata Motors’ ordinary and Class A shares—which carry a 10th of the voting rights— are materially undervalued and worth at least ₹ 700, London-based Knight Assets said in a statement on Wednesday. They traded at ₹ 445.80 and ₹ 293, respectively, at 11.43am in Mumbai.
“Knight Assets said it sent a letter to the Mumbai-based company on 10 June and met with management on 20 June to present its proposals. Tata Motors currently has no plans to list shares in New York," Minari Shah, a company spokeswoman, said in an e-mail.
“The solutions we have presented to the company, most notably the NYSE listing of an ADR for the ‘A’ shares, can correct this irrational discrepancy," Akshay Naheta, managing partner of Knight Assets, said in the statement.
Tata Motors last month posted profit that missed analyst estimates as a wider loss at its local business eroded gains from its profitable Jaguar Land Rover unit. The luxury unit is helping boost the company as its sales gained 8%, spurred by demand in China.
The company’s ordinary shares rose 17% this year as of Tuesday’s close. The Class A stock gained 62%, out pacing the 20 % advance in India’s benchmark Sensex. Bloomberg
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