Tata Motors (TAMO.NS) has announced its decision to cancel its 'A' ordinary shares, which will result in a reduction of the overall outstanding shares by 4.2%. The move is aimed at simplifying the company's capital structure. As consideration, the company will issue seven ordinary shares for every 10 'A' ordinary shares, offering a 23% premium on the previous day's closing level of 'A' ordinary shares, according to a regulatory filing.
The 'A' ordinary shares were first issued by Tata Motors in 2008, followed by a share sale in 2010 and a rights issue in 2015. Currently, these shares trade at a 43% discount to the company's ordinary shares.
In November, the automaker had announced plans to delist its American Depositary Shares from January, around 18 years since they first started trading.
