Tata Motors said on Wednesday that it plans to delist its American Depositary Shares (ADS) from the New York Stock Exchange (NYSE) after January 2023 and end its ADS program.
The company said it notified the New York Stock Exchange on Wednesday of its intention to voluntarily delist its ADSs, each of which represents its five shares of common stock.
In a filing to stock exchanges, the company said that since the ADSs were issued in 2004, it has seen a significant increase in liquidity and foreign shareholder participation in Indian stock markets.
“The company has further considered the steady decline in the number of ADSs outstanding as a percentage of its common shares outstanding. Therefore, the rationale for listing ADSs in the United States has diminished significantly,” according to the filing.
This will help simplify the company’s financial reporting requirements and reduce administrative costs. Upon delisting its ADSs, it will concentrate the trading of its capital shares in 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 about January 13, 2023 to delist its ADSs from the New York Stock Exchange,” it said.
Once the ADSs are delisted from the New York Stock Exchange, there will be no OTC trading of the ADSs in the United States due to regulatory restrictions under Indian law, the company said.
Meanwhile, the company reported a consolidated net loss of Rs 944.61 crore in the second quarter ending September 2022 compared to a net loss of Rs 4,441.57 crore in the same period of the previous year.
Its consolidated revenue from operations increased by 29.7% to Rs 79,611.37 crore in the second quarter ended September 2022 from Rs 61,378.82 crore in the same period of the previous year.