BENGALURU (Reuters) – Indian automaker Tata Motors said on Wednesday it plans to delist its American Depositary Shares (ADS) from January, roughly around 18 years since they first started trading.
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 U.S. has significantly diminished, Tata Motors said.
The owner of Jaguar Land Rover said the move will help simplify its financial reporting requirements and reduce administrative costs.
Tata Motors’s stock remains listed on the BSE and the National Stock Exchange of India.
ADSs are U.S. dollar-denominated shares of a non-U.S.-based company that trade on U.S. stock exchanges. Tata Motors’ ADSs were first issued in 2004.
(Reporting by Chris Thomas in Bengaluru; Editing by Savio D’Souza)
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