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News >> Technology >>
Patni approves Sponsored ADS Offering
By Sources
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Tuesday, 12 July 2005, 19:30 IST
MUMBAI: The Board of Directors of Patni Computer Systems Ltd has approved the proposal of sponsoring a Secondary American Depositary Shares Offering (ADS) against equity shares held by its existing shareholders in India.
The Board decided that the ADS offering would consist of a maximum of $6.5 million equity shares, including the over-allotment option, if any, as may be decided by the Company in consultation with the underwriters of the ADS Offering.
The Board has decided to convene an Extra-ordinary General Meeting (EGM) of the members of the Company next month to seek the approval of the members for the ADS Offering.
Earlier in the previous month, the members of the Company had approved the Primary ADR offering of up to $ 150 million.
Accordingly, the Company is now proposing to do a combined offering consisting of Primary and Sponsored Components. Since there will also be a Secondary Component in the total offering, the equity dilution may be less than that contemplated in the earlier offering structure of only primary shares, although the size of the total offering is currently not determined and there can be no assurance in this regard.
The release informed that it does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company. Securities may not be offered or sold in the U.S. absent registration or an exemption from registration. Any public offering of securities to be made in the U.S. by the Company or selling security holders will be made by means of a prospectus that may be obtained from the Company or selling security holder and that will contain detailed financial information about the Company and management, as well as financial statements.
The ADR offering is contingent upon a number of factors, including stock market conditions and the Company's and the underwriters' determination as to the appropriate time, if any, for such offering. There can be no assurance that such offering will be completed, says release.