New Delhi: Tata Group's hospitality arm - Indian Hotels Co Ltd, which runs a chain of luxury hotels and resorts under the Taj brand, plans to delist its global depository receipts (GDRs) from London Stock Exchange, two decades after it started trading on the bourse.
The board of directors of the company has approved the proposal for delisting of GDRs from London Stock Exchange (LSE), the company said in a filing to the BSE.
When contacted, a Taj spokesperson told PTI, "Presently, only 1,96,380 GDRs remain outstanding. Consequently, the trading volume of GDRs on the LSE is extremely low and virtually non-existent."
"In the light of low trading volume of GDRs on LSE, the company considers it more cost effective to cancel the listing of the GDRs from the LSE."
In 1995, IHCL had raised $86 million as equity through an issue of 51,95,783 GDRs, representing an equal number of underlying shares of face value of Rs 10 each, which, then, amounted to 11.52 per cent of the paid-up equity capital. These GDRs were listed on the London Stock Exchange (LSE), the spokesperson added.
IHCL said the delisting will be subject to "getting requisite approval from concerned agencies and other regulatory authorities and necessary filing with the relevant stock exchanges as may be necessary".