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Satyam announces $360-mn ADS issue
Thursday, 09 December 2004, 20:30 IST
HYDEARBAD: Satyam Computer Services Ltd, one of India's largest software services companies, Thursday announced a sponsored American Depository Shares (ADS) issue of $360 million.
The board of directors of the New York Stock Exchange (NYSE)-listed company approved the proposal of ADS issue against existing equity shares of the company, a company statement here said.
"The board decided that the size of the sponsored ADS issue shall not exceed 30 million equity shares, (equivalent to 15 million ADS) including green shoe option, if any," the company said.
This issue would amount to $360 million based on the closing price of ADS on NYSE as of Dec 7, 2004. An extraordinary general meeting has been convened for this purpose on Jan 7, 2005.
Each ADS of the company represents two existing fully paid-up equity shares of par value 
2 per share.
Presently, Satyam's ADS constitutes 10.6 percent of the issued capital but after this issue, ADS will represent 20 percent.
"Positive global trends towards offshoring have resulted in an enhanced interest in Indian IT companies. We believe the time is right to increase Satyam's float in the ADS market through sponsored ADS offering. This will bring us closer to achieving our objective of transitioning to a mainstream global IT services stock," said Satyam Chairman Ramalinga Raju.
"The sponsored ADS offering is a significant step for Satyam in value creation by improving liquidity in the ADS market, enhancing branding of the company and augmenting ownership amongst global tech investors," said Srinivas Vadlamani, chief financial officer.
Satyam's network spans 45 countries, across six continents. It serves over 350 global companies, including 109 Fortune 500 companies.
Source: IANS
2 per share.
Presently, Satyam's ADS constitutes 10.6 percent of the issued capital but after this issue, ADS will represent 20 percent.
"Positive global trends towards offshoring have resulted in an enhanced interest in Indian IT companies. We believe the time is right to increase Satyam's float in the ADS market through sponsored ADS offering. This will bring us closer to achieving our objective of transitioning to a mainstream global IT services stock," said Satyam Chairman Ramalinga Raju.
"The sponsored ADS offering is a significant step for Satyam in value creation by improving liquidity in the ADS market, enhancing branding of the company and augmenting ownership amongst global tech investors," said Srinivas Vadlamani, chief financial officer.
Satyam's network spans 45 countries, across six continents. It serves over 350 global companies, including 109 Fortune 500 companies.
Source: IANS