New Delhi: Auto major Tata Motors on Wednesday said it plans to delist its American Depositary Shares (ADS) from January, almost about 18 years since they first started trading.
ADSs are US dollar-denominated shares of a non-US-based company that trade on the US stock exchanges. Tata Motors’ ADSs were first issued in 2004.
Due to a considerable increase in liquidity and foreign shareholder participation in India’s stock markets and a consistent drop in the number of ADSs as a percentage of its outstanding ordinary shares, the rationale for ADS listing in the US has significantly diminished, the automaker said.
The move will help simplify its financial reporting requirements and reduce administrative costs, it said.
The company said it intends to file a Form 25 with the SEC on or around January 13, 2023 to delist its ADSs from the NYSE. 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 US due to regulatory restrictions under Indian law.
After the delisting becomes effective and once the Company satisfies the conditions for deregistration, the Company intends to file a Form 15F with the SEC to deregister the Securities and to terminate its reporting obligations under the Exchange Act.
Thereafter, all the company’s reporting obligations under the Exchange Act will be suspended. The deregistration and termination of its reporting obligations under the Exchange Act would be effective 90 days after filing of the Company’s Form 15F.
Tata Motors’ stock remains listed on the BSE and NSE.
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