Ashok Leyland to Delist GDRs from London Stock Exchange
Published On Mar 09, 2016
Ashok Leyland will delist its Global Depository Receipts (GDRs) from the London Stock Exchange. The decision was made in a meeting between the company's board of directors held on March 5, 2016. The company informed the BSE of this decision. Ashok Leyland claimed that it was making this move to avoid various cumbersome formalities.
The famous commercial vehicle maker, a flagship firm of the Hinduja Group, specified in a comment,, “The underlying shares arising out of GDRs are listed with BSE Limited and National Stock Exchange of India Limited.”
Between September and December last year, the company's GDR holding to total equity capital had shrunk from 12 percent to nil. The firm's GDRs were controlled mainly by its promoter unlike most other companies in the London Stock Exchange. Between September and December 2015, promoter holding in the GDR form fell from 11.57 per cent to nil. The GDR holding by non-promoter investors also fell from 0.81 percent to nil in the December 2015 quarter. Ashok Leyland’s GDRs had been listed on the LSE's professional securities market segment, and traded on its international order book trading service. However, the company hadn't seen a trade in its GDRs in the last five years.
About Ashok Leyland:
Ashok Leyland is one of the leading truck manufacturers in the Indian market. Established in 1948, the brand has its headquarters in Chennai. Over the course of seventy years, the company has grown to become the fourth largest bus maker globally and the 16th largest manufacturer of trucks. The company rolls out its vehicles through eight state of the art manufacturing plants. Of these, six are located in India, while the other two are based in UAE and UK respectively.