Tata Communications to delist from NYSE, stock down 4%
The move is triggered by thin volumes in the stock on the New York Stock Exchange (NYSE).
Tata Communications is trading lower by nearly 4% at Rs 230 on NSE after the company announces its intention to delist from the New York Stock Exchange (NYSE) and will terminate its American Depositary Receipts (ADR) programme due to low trading volumes.
The move is triggered by thin volumes in the stock on NYSE, and also Sebi rules that do not allow shares sold under ADR programmes to be included for calculating public shareholding, currently pegged at 25%.
"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," Tata Communications Managing Director and Chief Executive Officer Vinod Kumar said in a statement.
The stock opened at Rs 239 and has seen a combined 485,197 shares changing hands on the counter till 1216 hours on NSE and BSE.
The move is triggered by thin volumes in the stock on NYSE, and also Sebi rules that do not allow shares sold under ADR programmes to be included for calculating public shareholding, currently pegged at 25%.
"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," Tata Communications Managing Director and Chief Executive Officer Vinod Kumar said in a statement.
The stock opened at Rs 239 and has seen a combined 485,197 shares changing hands on the counter till 1216 hours on NSE and BSE.