29 June 2015
The Indian Hotels Company Limited, a Tata enterprise, had previously announced its intention to apply for the cancellation of the listing of its issued Global Depositary Receipts with ISIN numbers USY3925F1132 and US4542881010 (“GDRs”), each representing one ordinary share of INR 1 of the company, from the Official List of the UK Listing Authority (part of the Financial Conduct Authority) and trading on the London Stock Exchange.
The Financial Conduct Authority announced the GDRs cancellation from the Official List at 8.00am on 29 June 2015. The London Stock Exchange also announced at that time that the GDRs are cancelled from admission to trading on the London Stock Exchange.
The company had decided to terminate the GDRs’ listing from the Official List and from trading on the London Stock Exchange because the number of GDRs outstanding is very small compared with the number of GDRs originally issued. Consequently, the trading volume of GDRs on the London Stock Exchange was extremely low and virtually non-existent. In the light of the low trading volume of the GDRs on the London Stock Exchange, the company considered it more cost effective to cancel the listing of the GDRs.
The cancellation of the GDRs from the Official List and from trading on the London Stock Exchange will in no way affect the primary listing of the company’s shares on the National Stock Exchange of India Limited and the Bombay Stock Exchange. The holders of the outstanding GDRs shall obtain delivery of the company’s deposited shares corresponding to each holder’s GDR-holding.
How Cromwells can help
Lawyers at Cromwells, which acted for the company in this matter, have significant experience in dealing with corporate regulatory matters. Our lawyers are available to address any questions you may have (telephone 020 7887 6475 │ fax 020 7887 6465).
Note: This is a general briefing and not an exhaustive treatment of the subject.