Tata Communications is to delist from the New York Stock Exchange and terminate its American Depositary Receipts (ADR) programme, following the recent low-trading volumes.

The Indian company intends to file for delisting on or about May 28. The delisting would become effective 10 days after the filing, the Tata group company said in a regulatory communication.

“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 addition, the soon-to-be effective SEBI guidelines on minimum public shareholding was a crucial factor in our decision since, under SEBI’s guidelines, ADRs are not to be considered when calculating the percentage of public shareholding,” he added.

It will continue to report obligations under the US laws, until the termination of the registration.

The ADR holders would have until August 13, to surrender their ADRs in exchange for ordinary shares.

The company also said that following the delisting, the deposit agreement, pursuant to which the ADRs were issued, would be amended and terminated.

The amendment will require the depositary to sell the ordinary shares of the company underlying any ADRs that remain outstanding as soon as practicable (after the date, that is, 30 days after termination of the ADRs programme becomes effective) on or about August 14.

rajesh.kurup@thehindu.co.in

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