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Infosys to open $1 B ADR offer today
By agencies
|
Monday, 09 May 2005, 19:30 IST |
1 Comments
BANGALORE: IndiaÂ’s second biggest software exporter, Infosys Technologies Ltd. said its offer of American Depositary Receipts (ADRs) against existing local shares would open on Monday.
The company said it would convert up to 16 million shares or 6 percent of its underlying local shares into equivalent AD
Upon completion of the offer, Infosys' total U.S. float will rise to about 14 percent of its equity capital.
Based on Friday's close of $62.60 per ADR, a successful offer could take the value of the deal to about $1 billion, making it the biggest conversion of Indian shares into ADRs on record.
This is Infosys's second ADR conversion. The scheme, open until May 19, will allow local shareholders to tender their holdings, which will then be converted into ADRs at a price to be determined later.
Bankers say the offer will help local investors capture part of the premium at which Infosys ADRs are traded on Nasdaq. Infosys became the first Indian company to list on the Nasdaq when it issued American depositary shares on the technology-laden stock exchange in 1999.
Earlier this year, ICICI Bank Ltd. concluded a similar ADR offer by converting 44.2 million shares in a deal worth $405 million.
Satyam Computer Services Ltd., the nation's fourth-biggest software services exporter, has filed for an offer to convert 30 million local shares into 15 million AD
Infosys concluded its first ADR conversion in July 2003, offering 2.6 million shares at $49 each. The ADR premiums have narrowed significantly since the first plan, and traders expect them to shrink further as the overseas float increases.
Upon completion of the offer, Infosys' total U.S. float will rise to about 14 percent of its equity capital.
Based on Friday's close of $62.60 per ADR, a successful offer could take the value of the deal to about $1 billion, making it the biggest conversion of Indian shares into ADRs on record.
This is Infosys's second ADR conversion. The scheme, open until May 19, will allow local shareholders to tender their holdings, which will then be converted into ADRs at a price to be determined later.
Bankers say the offer will help local investors capture part of the premium at which Infosys ADRs are traded on Nasdaq. Infosys became the first Indian company to list on the Nasdaq when it issued American depositary shares on the technology-laden stock exchange in 1999.
Earlier this year, ICICI Bank Ltd. concluded a similar ADR offer by converting 44.2 million shares in a deal worth $405 million.
Satyam Computer Services Ltd., the nation's fourth-biggest software services exporter, has filed for an offer to convert 30 million local shares into 15 million AD
Infosys concluded its first ADR conversion in July 2003, offering 2.6 million shares at $49 each. The ADR premiums have narrowed significantly since the first plan, and traders expect them to shrink further as the overseas float increases.