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The shares of Vedanta slipped over 2 per cent on Friday after the company announced its plans to delist its American depositary shares (ADSs) from the New York Stock Exchange (NYSE) and terminate its American depositary share program. Vedanta closed at ₹293.20 on the BSE, down ₹6.80 or 2.27 per cent.
Vedanta has announced its intention to delist its ADSs, representing its equity shares from the NYSE and to terminate its ADS program.
Upon delisting of its ADS program, the company will concentrate all trading of its equity shares on the BSE and the NSE in India, it said.
Aimed at simplification
“The decision to delist American depositary shares from NYSE is aimed at simplification and triggered by the low trading volumes in the security that doesn't justify the concomitant costs and related statutory obligations,” Vedanta said in a statement.
“On the other hand, the Vedanta share is extremely liquid on Indian bourses with high daily volumes and provides both efficient price discovery and ample buy-sell opportunity to investors, including global ones. A number of other companies have also followed this path in the recent past, considering that the depth of our domestic stock exchanges has gone up significantly while technology has made it easier to invest from any part of the globe,” it said.
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