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.