Tata Motors Ltd. is expected to list a Japanese depository receipt on the Tokyo Stock Exchange as early as this summer, becoming the first Indian company to debut on the bourse, according to sources cited in a Kyodo news report.
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This would also represent the first listing of a JDR, the Japanese version of the American depository receipt, since it became available in November. Depository receipts are securities issued by banks to domestic buyers as a substitute for direct ownership of stocks in foreign firms.
Apparently aiming to raise funds from the Japanese market, Tata Motors is expected to work on details of the planned listing with the Tokyo bourse and the Financial Services Agency, the sources said.
Tata Motors is reported to be raising finance to help pay for the acquisition of Jaguar and Land Rover for USD2.3bn.
The Kyodo report added that the Tokyo Stock Exchange has been suffering from an exodus of foreign listed firms. The number of foreign companies listed there has fallen to 25 after peaking at 127 in 1991, it said.
The JDR is suitable for overseas companies which cannot list their shares abroad due to restrictions in their countries. Investors can trade a JDR in the same way as stocks.
