Tata Comm 'lists' in the red

Tata Communication is currently the top loser on the BSE, down 2% at Rs.234.65, closer to its intra day low at Rs.233.75.

The stock is in the red after the company stated yesterday, post market closing that it will apply to the U.S. markets regulator before the end of this month to delist its American Depositary Receipts from the New York Stock Exchange. The company will file its delisting application on or around May 28 and delisting will become effective 10 days after the filing. The company has stated that it opted to delist due to low volumes and low liquidity.

Promoters currently hold 76.15% stake and the management has stated that delisting of these ADRs will also help it meet SEBI’s rule of 75% promoters stake before end of June. ADRs are not considered for public shareholding by SEBI.