Tata Comm to delist from NYSE on low trading volume
Mumbai: Tata Communications Ltd (TCL) Wednesday said it has decided to delist from the New York Stock Exchange (NYSE) due to low trading volume of its shares.
"Our decision to delist, deregister and terminate our ADR programme was the result of several factors, including the fact that our ADR programme had not developed the trading volumes or liquidity we had initially hoped when we listed," TCL Managing Director and Chief Executive Officer Vinod Kumar said in a statement.
Besides, the soon-to-be effective guidelines of market regulator Sebi on the minimum public shareholding was a crucial factor in the company's decision as ADRs are not to be considered when calculating that, he said.
The company said that it will focus on trading of shares Indian stock exchanges only, and will concentrate all trading of its ordinary shares on the Bombay Stock Exchange and National Stock Exchange in India.
Tata Communications has the "intention to delist its American Depository Shares (ADSs)...From the NYSE and to terminate its ADR programme", the statement said, adding that the Board of Directors has taken into account the "recent low trading volume of its ADS on the NYSE".
The company said it intends to file a form with US regulator SEC for delisting from NYSE on or about May 28, 2013. "The delisting will become effective 10 days after such filing."
The company will amend the deposit agreement pursuant to which ADRs were issued and terminate the deposit agreement.
"The amendment will require the Depositary to sell the ordinary shares of the company underlying any ADRs that remain outstanding as soon as practicable after the date that is 30 days after termination of the ADR programme become effective, on or about August 14, 2013," TCL said.
TCL ADR holders will have until at least August 13 to decide whether to retain their interest in the ordinary shares of the company.
TCL scrip closed at Rs 239.1, up 0.86 percent on the BSE.