Mahindra Satyam has served ‘termination notice’ on the holders of ADRs (American Depository Receipts) and set the programme termination date as September 12, 2011.
Reaching out to the ADR holders through SEC (Securities and Exchange Commission of United States), the company said the last date for submitting ADRs is March 12, 2012 and the company, through Citibank would force sell the ADRs (after converting them to Indian equivalent of equity shares) during March 12 to 31.
“ADS holders who have not surrendered their ADS in time for cancellation will receive the net cash proceeds from the sale of the shares, together with the unpaid dividends,” the company informed the SEC.
While announcing numbers for the first quarter ended June 30, 2011, Mr Vineet Nayyar, the Chairman of Mahindra Satyam, had announced the winding down of ADS programme, giving ADS holders three options. They can offload during the winding down period, or open brokerage accounts (if eligible) and convert their ADS to Indian equity shares and sell. The third option is allow it to lapse to get credited into a separate account that, in turn, would be liquidated by Citibank. The proceeds, after paying taxes, would be remitted to the investors back in the US.