Tata Motors to delist its American Depository Shares from NYSE

10 Nov 2022 , 08:34 AM

On Wednesday, Tata Motors disclosed its intention to end the ADS program and delist its American Depositary Shares (ADS) from the NYSE after January 2023.

The business that owns JLR claimed that it has informed NYSE of its intention to voluntarily delist its ADS, each of which represents five common shares of the company.

Foreign firms may list on US stock exchanges using American depositary receipts (ADRs), which are negotiable certificates that represent an ownership stake in ADS.

The company said there has been a persistent decline in the number of ADSs outstanding as a percentage of its outstanding ordinary shares, asserting that there is no longer a strong business case for ADS listing in the United States.

Tata Motors stated in an exchange filing that since the issuance of the company’s ADSs in 2004, “the company has observed a notable rise in liquidity and foreign shareholder engagement in the equities stock markets in India.”

On or about January 23, 2023, the ADSs are anticipated to cease trading on the NYSE. Due to regulatory limitations imposed by Indian law, after the ADSs have been delisted from the NYSE, there won’t be any over-the-counter market trading of the ADSs in the United States.

For feedback and suggestions, write to us at [e-mail]