November 22, 2008

TATA Motor may list on TSE - Report

Kyodo News reported that rumors of TATA Motors Ltd debuting on the Tokyo Stock Exchange by the end of this year as the first Indian firm to be listed on the bourse are the kind of buzz the TSE badly needs to lift its languishing global image

But observers say the possible listing of TATA known globally for its aggressive acquisition moves has also sparked fears that the Indian auto giant may hunt for Japanese auto parts makers once it enters the market. As per report TATA is expected to apply for the issuance of a Japanese depository receipt on the TSE, which would mark the first listing of a JDR since it became available last November.

The Japanese version of the American depository receipt is part of efforts by the Tokyo bourse to attract the listing of foreign companies, whose number has plunged from a peak of 127 in 1991 to the current 22. By listing on the TSE, sources close to the matter have said the automobile arm of Indian conglomerate TATA Group hopes to collect about 100 billion yen to cover massive costs for its investments in infrastructure. Tata grabbed headlines across the globe after it recently acquired British luxury brands Jaguar and Land Rover from Ford Motor Co.