Tata Motors has announced that it would delist its American Depositary Shares (ADS) from the New York Stock Exchange (NYSE) in January 2023 and discontinue its ADS programme. On Wednesday (November 10), the business notified the NYSE of its intention to voluntarily delist its ADSs, which represent five ordinary shares.
According to a report to exchanges, the firm has seen a significant rise in liquidity and international shareholder engagement in India’s equities capital markets since the ADS were issued in 2004.
“In addition, the firm has taken into account the steady decrease in the number of ADSs outstanding as a percentage of its outstanding ordinary shares.” As a result, the reason for ADS listing in the United States has greatly weakened,” the filing stated.
This will aid in the simplification of the company’s financial reporting needs and the reduction of administrative costs. Following the delisting of its ADSs, it would focus equity share trading on the BSE Ltd and the National Stock Exchange of India Ltd. (NSE).
“On or about January 13, 2023, the firm expects to submit a Form 25 with the US Securities and Exchange Commission (SEC) to delist its ADSs from the NYSE,” it stated.
According to the firm, after the ADSs are delisted from the NYSE, there will be no over-the-counter market trading of the ADSs in the United States due to regulatory constraints under Indian law.
In addition, the firm recorded a consolidated net loss of Rs 944.61 crore in the second quarter ended September 2022, compared to a net loss of Rs 4,441.57 crore the previous year.
Its total income from operations increased by 29.7% to Rs 79,611.37 crore in the second quarter ended September 2022, up from Rs 61,378.82 crore the previous year.
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