Tata Motors To Deregister U.S.-Listed Shares
In November 2022, Tata Motors had announced plans to deregister its U.S.-listed shares.
Tata Motors Ltd. has sought to deregister all its U.S.-listed securities from the country's capital markets after meeting the set criteria for the action.
The company has filed Form 15F with the Securities and Exchange Commission to deregister American Depositary Shares, each representing five ordinary shares, and terminate its reporting obligations under U.S. law.
The deregistration and termination of reporting obligations are expected to become effective within 90 days after the filing of the Form 15F, unless withdrawn by the company or objected to by the SEC, according to an exchange filing on Wednesday.
All of Tata Motors' reporting obligations under America's 'Exchange Act' would be suspended immediately upon such filing.
The delisting of securities in the U.S. has no impact on the current listing status or trading of the company’s equity shares on Indian bourses, the company said.
In January last year, the carmaker had filed Form 25 with the SEC and the delisting of its ADS from the New York Stock Exchange became effective immediately.
In November 2022, Tata Motors had announced plans to deregister its U.S.-listed shares, citing consistent drop in the number of ADSs outstanding as a percentage of its outstanding ordinary shares. The company’s ADSs were issued in 2004.
The move was aimed to simplify the company’s financial reporting requirements and reduce administrative costs.
Shares of Tata Motors closed 1.31% higher at Rs 810.90 apiece on the BSE before the announcement, as compared with a 0.98% advance in the benchmark Sensex.
