Why do Company Issue Depository Receipts :
Company issues DRs as a tool to access Global capital markets. Following are the some reason for issuing DRs by a company –
• To raise Capital
• Diversify Shareholder base into extended geographies
• Increase visibility & recognition in international market
• Global Image
• Set Up Employee Stock Option Plans
• Facilitate Merger & Acquisition activity by creating a desirable acquisition currency.