Financial Daily from THE HINDU group of publications
Sunday, Feb 23, 2003
Financial Daily from THE HINDU group of publications Sunday, Feb 23, 2003 |
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Software Info-Tech - Overseas Borrowings Infosys shareholders clear ADR conversion plan Our Bureau
Mr Nandan Nilekani (right), CEO, Infosys , and Mr Mohandas Pai, CFO, at the Extraordinary General Meeting in Bangalore on Saturday. Mr N.R. Narayana Murthy, Chief Mentor, is seen on the screen addressing the meet from Germany.
BANGALORE, Feb. 22 SOFTWARE major Infosys Technologies today received shareholders' approval for its sponsored secondary ADR programme, through which the company plans to increase liquidity of its stock on Nasdaq by converting local shares. At an extraordinary general meeting in Bangalore, the company got the `go ahead' for its sponsored ADR issue from shareholders with requisite majority. Infosys plans to convert between two and three million local shares into four to six million American depository receipts (ADR), in a bid to increase the liquidity of overseas float in the US and increase its profile among investors. Addressing shareholders from Stuttgart in Germany through video-conference, the Infosys Chairman and Chief Mentor, Mr N.R. Narayana Murthy, said, "We want to become a mainstream stock in the US and want to be covered by mainstream analysts. We want our stocks, our ADRs to be handled by well known, long-term players." Infosys has already received the necessary approvals from the FIPB for the sponsored ADR issue. "The pricing of the issue would be determined by the lead underwriters at a later date," said Mr Nandan Nilekani, CEO and Managing Director, Infosys. All shareholders holding Indian equity shares will have a pari passu right to participate in this offering, he added. Infosys has appointed Goldman Sachs, Merryll Lynch and Salmon Smith Barney as global book runners to the issue while Deutsche Bank Securities and UBS are the co-managers for the issue. About 4.2 million ADRs of Infosys are traded on Nasdaq and with this proposed secondary ADR plan, the float will increase by 100-150 per cent, said Mr V. Balakrishnan, Company Secretary and Vice-President (finance), in a presentation to the shareholders. The company has filed a review proposal with Securities and Exchange Commission on January 27 and once it is finalised and approved, a time frame will be fixed for the issue, Mr Nilekani told reporters after the EGM.
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