India's Tata Motors to cancel 'A' ordinary shares, reducing total share count

BENGALURU, July 25 (Reuters) - Tata Motors (TAMO.NS) said on Tuesday would cancel its A ordinary shares, which would reduce the number of its overall outstanding shares by 4.2%, to simplify its capital structure.

The company will issue seven ordinary shares for every 10 A ordinary shares as consideration, implying a 23% premium on the previous days closing level of A ordinary shares, Tata Motors said in a regulatory filing.

The A ordinary shares were first issued by Tata Motors in 2008 and then via a share sale in 2010 and rights issue in 2015.

These class of shares currently trade at a 43% discount to the companys ordinary shares.

The automaker had in November announced plans to delist its American Depositary Shares from January, roughly around 18 years since they first started trading.