Loss-making Tata Communications Ltd. has decided to delist its American Depository Shares from the New York Stock Exchange (NYSE), and terminate its American Depositary Receipts (ADR) programme, citing very low trading volume among other reasons.
The company said it would concentrate all trading of its ordinary shares on the BSE and NSE in India. The board of directors has taken into account the recent low trading volume of its ADS on the NYSE, the upcoming date for compliance with the SEBI mandate on minimum public shareholding, and associated costs of maintaining the listing and related obligations, Tata Communications said in a filing with the stock exchanges.
Holders of the company’s ADRs will have until at least August 31, 2013 to decide whether to retain their interest in the ordinary shares of the company. At any time before August 13, ADR holders may surrender their ADRs in exchange of the underlying ordinary shares of Tata Communications. After August 14, the depository will sell the ordinary shares underlying any ADRs that have not been surrendered.