Tata Motors firms up prior to ADR listing

DALAL STREET SPIKES

Tata Motors ended firm in a weak market on Friday ahead of its American depositary receipts (ADR) listing on the New York Stock Exchange.

The stock hit a high of Rs 419.65, before closing at Rs 411.55, on the back of a strong volume of more than 21.37 lakh shares on the BSE.

Analysts said the stock has been on the limelight prior to its ADR listing on August 27 after which it can be benchmarked with the ADR closing price.

From Rs 388.85 on September 16, 2004, the scrip has gained 5.9 per cent to Friday's close of Rs 411.55.

Tata Motors' ADR listing would be by way of the conversion of its outstanding GDRs into ADRs, similar to what telecom major Mahanagar Telephone Nigam did a few years back. Therefore, there will be no fresh issue of funds.