Tata Motors on Wednesday announced that it will delist its American Depositary Shares (ADS) from the New York Stock Exchange (NYSE). Tata Motors ADS currently represent five Ordinary Shares of the Company, par value of Rs. 2 per share.
The Board of Directors of the Company (the “Board”) has resolved to voluntarily delist the ADSs from the NYSE, deregister the Securities from the SEC and take all necessary or appropriate actions in furtherance of such delisting and deregistration
Tata Motors on Wednesday announced that it will delist its American Depositary Shares (ADS) from the New York Stock Exchange (NYSE). Tata Motors ADS currently represent five Ordinary Shares of the Company, par value of Rs. 2 per share.
"Since the Company’s ADSs were issued in 2004, the Company has witnessed a considerable increase in liquidity and foreign shareholder participation in the equity stock markets in India. The Company has further considered the consistent drop in the number of ADSs outstanding as a percentage of its outstanding Ordinary Shares. Therefore, the rationale for ADS listing in the United States has significantly diminished. The Board of Directors of the Company (the “Board”) has resolved to voluntarily delist the ADSs from the NYSE, deregister the Securities from the SEC and take all necessary or appropriate actions in furtherance of such delisting and deregistration. This will help simplify the Company’s financial reporting requirements and reduce administrative costs," Tata Motors said in a regulatory filing.
Meanwhile, the country's largest electric vehicle maker and parent of luxury car maker Jaguar Land Rover on Wednesday said that its consolidated net loss narrowed to Rs 945 crore from loss of Rs 4,441 crore in the same period last year and loss of Rs 5,006 crore in the previous quarter. The sharp decline in profit came on the back of strong sales and high demand for its vehicle across verticals.
Its revenue from operations jumped 30 per cent annually to Rs 78,846.92 crore compared with Rs 60,435.92 crore in the same quarter last year. Revenue of its luxury car maker Jaguar Land Rover came in at 5.3 billion pounds, up 36 per cent year-on-year (Y-o-Y).
During the quarter Tata Motors' passenger vehicle (PV) segment staged a strong performance as revenue of PV business jumped 71 per cent to Rs 12,500 crore. Its earnings before interest, tax, depreciation and amortization (EBITDA) margin also known as operating profit margin came in at 5.4 per cent.
The company sold 1,42,300 units of passenger vehicle during the quarter, up 69 per cent annually. The company also signed definitive agreement for acquisition of Ford India’s Sanand plant. The plant would unlock capacity of 3,00,00 vehicles per annum and scalable to 4,20,000 vehicles per annum, the Mumbai-based auto giant said.
Tata Motors stock price fell 0.44 per cent to close at Rs 433 ahead of its earnings announcement.