Tata Nexon (Photo: Tata Motors)
In November 2022, Tata Motors had said it intended to voluntarily de-list its ADS; Know what it means
Tata Motors share price today: Tata Motors has confirmed that the voluntary delisting of its American Depositary Shares (the ADSs), representing the common stock of the company, from the New York Stock Exchange (the NYSE) will take effect January 23, 2023 at the close of trading on the NYSE. the Company’s filing of Form 25 with the Securities and Exchange Commission on January 13, 2023.
The share price of Tata Motors rose about 2 percent, or 9, to Rs 417.40 in early trading on Jan. 24. The stock opened higher with Re 1, but then continued to build on gains.
After Monday, there will be no over-the-counter market trading of American Depositary Shares (ADSs) in the US due to regulatory restrictions under Indian law, Tata Motors said in a regulatory filing.
In November 2022, Tata Motors had announced its intention to voluntarily scrap its ADS. The company was listed in the US in 2004. Each Tata Motors ADS represents 5 common shares of the company.
While the liquidity and foreign participation of the share in India has increased, the number of outstanding deposit shares has been steadily declining in recent years.
Therefore, the rationale for ADS listing in the US has declined significantly, Tata Motors said.
In the past 3 years, the value of Tata Motors’ share in India has more than doubled, while that of ADRs has only yielded about 31 percent.
The stock reached a 52-week high of Rs 519.50 on 31 January 2022 and a 52-week low of Rs 366.05 on 12 May 2022.
Tata Motors quarterly December results today
The automaker is also expected to report its December quarterly results later today.
On a standalone basis, Kotak Institutional Equities sees Tata Motors losses shrink to Rs 26.50 crore in the December quarter from Rs 215.70 crore loss in September and Rs 610 crore loss in the same quarter a year ago. Revenue is up 17.7 percent year-on-year to Rs 14,544 crore compared to Rs 12,352.80 crore in the same quarter last year. The margin grew to 5.2 percent, from 4.4 percent in September and 2.4 percent in the corresponding quarter last year.
“We estimate standalone revenues will decline 3 percent QoQ in Q3FY23, led by a 5 percent QoQ decline in volumes and 2 percent QoQ increases in ASPs due to a richer product mix mix. Overall, we expect Ebitda margin to improve to 5.2 percent in Q3FY23 from 4.4 percent in Q2FY23, led by tailwinds from RM,” the company said.
On a consolidated basis, Kotak sees a profit of Rs 800 crore against a loss of Rs 1,796 crore in the same quarter last year. Revenue is up 14.50 percent year-on-year to Rs 82,718 crore, Kotak said.
Motilal Oswal sees the consolidated profit at Rs 160 crore. The business outlook for India remains healthy, led by strong PV and CV growth, the company said. JLR volumes may grow on a year-over-year basis as a result of mitigating the chip shortage problem, it said. The brokerage estimated Ebit margin for JLR at 3.7 percent, supported by mix, RM softening and cost containment. India’s Ebitda margin is estimated to increase 50 basis points year-on-year due to declining RM cost inflation.
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