Infosys' shareholders approve ADS offer

Monday, 20 December 2004, 20:30 IST
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BANGALORE: Infosys Technologies Ltd, India's global software major, secured the approval of its shareholders for sponsoring 16 million American Depository Shares (ADS) against the existing equity shares. A special resolution to this effect was moved by Infosys CEO, president and managing director Nandan N. Nilekani at an extraordinary general meeting (EGM), held here to seek the shareholders' approval. Though a few shareholders expressed reservations on the secondary offering, the resolution was passed unanimously by a voice vote after the company's board of directors clarified their doubts on the holding pattern and the objectives of the issue. Company chairman and chief mentor N.R. Narayana Murthy, who could not be present at the EGM personally, chose to address the shareholders from Bangkok in Thailand through videoconference. In his opening remarks, Murthy said the purpose of the ADS issue was to enhance the company's brand equity globally and increase the liquidity of the Infosys stock (Infy) on the Nasdaq stock exchange, where its ADS are listed. "We want to be a global entity with global investors and global customers. Once our liquidity goes up on the Nasdaq, the company will be talked about and written about more in the international press. "Our aim is to make Infy the prime among the mainstream stocks on the Nasdaq for global investors," Murthy stated. The 16 million ADS being offered are being valued at $1 billion on the basis of the company's stock price on the Nasdaq currently at $66-68. After the EGM, Nilekani told reporters that the company would be filing its sponsorship with the Securities Exchange Commission (SEC) in the US as well as with the RBI, SEBI and other appropriate authorities for approvals. "Once we get the various clearances, we will put the offer to our shareholders. We will also hold road shows the world over for the ADS issue," Nilekani said. The company is also considering making a public offer of the ADS without listing in Japan for retail investors. It will inform all its shareholders early next year about the procedure being adopted to sell their equity shares. The price of the ADS offer will be determined at the time of listing on the Nasdaq.
Source: IANS