I want to know how one unit of ADR is constructed from the home stock.

For example, I see a ADR for India's Tata motors . ADR is trading at about $12 and in home market it is about INR 177, but given the conversion of INR 71 to USD 1, one Indian stock should be selling for about $2.50, but it is for $12, so there has to be more than one Indian stock in one unit of ADR.

Where can I find that conversion and is that conversion a standard ?


1 Answer 1


Thanks to @SSpring in comments adr.com, which is owned by Morgan Stanley so relatively reputable, states that the multiplier is 5:

Ratio (DR/underlying)1 : 5

this means the ratio of the DR (depositary receipt) to the underlying (the Indian Tata Motors shares) is 1:5. This fits with your analysis since 5 * $2.5 is approximately $12. The "approximately" is probably a result of rounding differences.

Result from https://www.adr.com/drprofile/876568502

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