Processing .....please wait.. 
The article has been forwarded.... 
News >> Technology >>
Infosys promoters dilute stake via ADS
By agencies
|
Wednesday, 25 May 2005, 19:30 IST
BANGALORE: Top honchos of Infosys Technologies Ltd, including the promoters and the directors, have sold over 5.16 million shares in the sponsored ADS issue, accounting for 32 percent of the issue size of 16 million shares. This issue included a green-shoe option of two million shares.
Chairman and chief mentor, N.R. Narayana Murthy, leads the pack of Infosys officials in selling shares. He has sold over 1.55 million shares, including optional shares of some 190,000 shares, bringing down his stake to some 6.01 percent from about 6.58 percent.
Based on Monday's closing of Infosys' ADR price of $68.75 on Nasdaq, Narayana Murthy is likely to net a little over $100 million.
Similarly, the CEO and Managing Director, Nandan Nilekani, who held a stake of 4.57 percent , sold about 1.076 million shares including optional shares of 135,000 shares. Post-sale, Nilekani's shareholding has reduced marginally to 4.17 percent. His realization is likely to be around $74 million.
S. Gopalakrishnan, Deputy Managing Director and Chief Operating Officer, sold some 1.042 million shares, thus bringing down his holding in the company to about 4.04 percent. His realization from the sale is likely to be around $71 million.
K. Dinesh, Director, sold some 760,000 shares reducing his stake to 2.96 percent and his gain from the sale is likely to be around $52.25 million. Shibulal, another director and promoter, sold some 688,000 shares and may gain around $47.3 million.
The Chief Financial Officer, T.V. Mohandas Pai, has sold 19,306 shares, while another director, Srinath Bhatni, has sold some 10,000 shares.
V. Balakrishnan, Vice-President (Finance) and Company Secretary, has sold 10,213 shares. With this sale, the combined holdings of promoters and directors stood reduced to 20.29 percent compared to 22.20 percent before the issue.
The company is likely to announce the issue price on Wednesday, sources said. Other major shareholders including FIIs have sold about 5.9 million shares reducing their stake to 23.01 percent, against the earlier 25.19 percent.
The promoters, directors and institutional investors who hold more than 1 percent stake in Infosys account for 69 percent of the 16 million ADS issue.
The institutional shareholders diluting their stake in the ADS issue include UBS Securities Asia Ltd, Merrill Lynch Capital Markets, Espana S.A., Copthall Mauritius Investment Ltd, Morgan Stanley and Co, Emerging Markets Growth Fund, Goldman Sachs, Deutsche Securities, Fidelity Management and Research, Oppenheimer Funds and Jamuna Ragavan.