Tata Communications to Delist From NYSE
By R. JAI KRISHNA
NEW DELHI–Tata Communications Ltd. 500483.BY -1.87% said Wednesday it will apply to the U.S. markets regulator before the end of this month to delist its American Depositary Receipts from the New York Stock Exchange NYX +1.63% .
The Mumbai-based company that provides communications services to businesses and runs an undersea cable network said it decided to delist its ADRs partly because of low trading volumes.
In a regulatory filing, Tata Communications said it will file its delisting application on or around May 28. The delisting will become effective 10 days after the filing, it added.
The company will remain listed on India’s Bombay Stock Exchange and National Stock Exchange, the statement said.
Managing Director Vinod Kumar said the “ADR program had not developed the trading volumes or liquidity we had initially hoped when we listed.”
The delisting of the ADRs will help the company meet a new Indian rule that requires all listed private companies to have at least a 25% public shareholding by the end of June, Mr. Kumar said. ADRs aren’t considered for public shareholding by the Securities and Exchange Board of India, he added.
The company’s controlling shareholders held a 76.15% stake in it at the end of March, according to data from the Bombay Stock Exchange.