Tata Motors to delist American Depositary Shares from NYSE
1 min read . Updated: 09 Nov 2022, 06:22 PM IST
Premium- The company said it has notified the New York Stock Exchange
Tata Motors on Wednesday announced that it will delist its American Depositary Shares (ADS) from New York Stock Exchange. The company said it has notified the New York Stock Exchange on Wednesday.
"Tata Motors Limited today announced that it has notified the New York Stock Exchange (the “NYSE") on November 9, 2022 (Mumbai, India Time) of its intent to: (i) voluntarily delist its American Depositary Shares(the “ADSs"), each representing five (5) Ordinary Shares of the Company, par value of Rs.2 per share (the “Ordinary Shares"), from the NYSE," the company corporate filing said.
US stock exchanges allow listing of foreign companies in the form of American depositary receipts (ADR), which is a negotiable certificate that evidences an ownership interest in ADS.
Tata Motors said there have been a consistent drop in the number of ADSs outstanding as a percentage of its outstanding ordinary shares.
"Since the company’s ADSs were issued in 2004, the company has witnessed a considerable increase in liquidity and foreign shareholder participation in the equity stock markets in India," the company said in an exchange filing.
"This will help simplify the company’s financial reporting requirements and reduce administrative costs," it said. Upon delisting its ADSs, Tata Motors said it would concentrate on trading its equity shares on BSE and NSE.
Holders of ADSs are encouraged to present their ADSs to Citibank, NA for cancellation before the cut-off time and delivery of the underlying ordinary shares of the company.
The last trading day of the ADSs on the NYSE is expected to be on or around January 23, 2023. Once the ADSs have been delisted from the NYSE, there would be no over-the-counter market trading of the ADSs in the United States due to regulatory restrictions under Indian law.
On Wednesday, Tata Motors reported a consolidated net loss of ₹944.61 crore for the second quarter ending September (Q2FY23). The company had posted a net loss of ₹4,441.57 crore in the year-ago period.
The company's consolidated revenue jumped 29.7% to ₹79,611.37 crore as against ₹61,378.82 crore from the year-ago period.
