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Tata Motors has said it plans to delist its American Depositary Shares (ADS) from the New York Stock Exchange (NYSE) after January 2023 and terminate its ADS programme. The company notified the NYSE on Wednesday (November 10) of its intent to voluntarily delist its ADSs, each representing its five ordinary shares.
In a filing to exchanges, the company said since the ADS were issued in 2004, it has witnessed a considerable increase in liquidity and foreign shareholder participation in the equity stock markets in India.
“The company has further considered the consistent drop in the number of ADSs outstanding as a percentage of its outstanding ordinary shares. Therefore, the rationale for ADS listing in the United States has significantly diminished,” it said, as per the filing.
This will help simplify the company’s financial reporting requirements and reduce administrative costs. Upon delisting of its ADSs, it will concentrate trading of its equity shares on the BSE Ltd and the National Stock Exchange of India Ltd (NSE).
“The company intends to file a Form 25 with the US Securities and Exchange Commission (SEC) on or around January 13, 2023 to delist its ADSs from the NYSE,” it said.
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, the company said.
The company on Wednesday also reported a consolidated net loss of Rs 944.61 crore in the second quarter ending September 2022, as compared to a net loss of Rs 4,441.57 crore in the year-ago period.
Its consolidated revenue from operations rose by 29.7 per cent at Rs 79,611.37 crore in the second quarter ending September 2022, from Rs 61,378.82 crore in the year-ago period.
