Tata Communications to delist from NYSE
15 May 2013
Tata Communications Ltd (TCL) has decided to delist its stock from the New York Stock Exchange (NYSE) due to low trading volume of its shares. TCL said it would apply to the US market regulator before the end of this month to delist its American Depositary Receipts from the NYSE.
Mumbai-based TCL said in a regulatory filing that it would file its delisting application on or around 28 May. The delisting will become effective 10 days after the filing, it added.
TCL provides communication services to businesses and runs an undersea cable network.
''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.
The company will remain listed on the Bombay Stock Exchange and the National Stock Exchange, the statement added.
Post delisting of the ADRs, the company will meet SEBI rules that require all listed private companies to have at least a 25 per cent public shareholding by the end of June, Kumar said.
SEBI, however, does not consider ADRs as public shareholding.
The company's promoter group held 76.15 per cent stake in TCL at the end of March, according to BSE data.