Business Daily from THE HINDU group of publications
Wednesday, Nov 08, 2006
ePaper


News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Markets - Stocks
Info-Tech - Overseas Borrowings
Get Latest BSE Quote
Infy shareholders approve ADS conversion

Our Bureau

Bangalore Nov. 7

Shareholders of Infosys Technologies Ltd have approved the company's proposal to convert up to 30 million local shares into American Depository Shares (ADS), which should help the software major get into the Nasdaq 100 Index, raise its brand equity in US and win more customers.

"We want to be the first Indian registered company to get into the NASDAQ index. That particular journey requires that we enhance liquidity in the US. This is part of reaching that goal," the Infosys Chief Mentor, Mr N.R. Narayana Murthy, told shareholders at an extraordinary general meeting on Tuesday.

ADS Issue

The proposed sponsored ADS issue is the third such issue by the company since it got listed on Nasdaq in 1999. The last sponsored ADS issue in 2005 exceeded a billion dollar in size. At Monday's closing price of $51.66, the proposed issue if fully subscribed would exceed $1.5 billion in size.

Allaying shareholders' concern over the proposed issue — where a section of them felt that such an exercise was a pre-cursor for the company's takeover by foreigners — Mr Murthy asserted that the aim was to make Infosys bigger. Infosys believed in globalisation and "openness" and that the US market accounted for more than 60 per cent of its revenues, he said.

"We have to get more and more clients outside India and we have to enhance our brand equity. For that a lot of large firm's chief financial officers (in the US) must feel comfortable about us. They have to see us on their stock exchanges," he said. The Nasdaq index includes 100 of the largest domestic and international non-financial securities listed on exchange based market capitalisation.

At present, foreign institutional investors hold 36 per cent stock of Infosys. About 14 per cent of Infosys' stocks is listed and traded overseas. The issue, if fully subscribed, would increase Infosys' overseas float to 19.35 per cent, said Mr V. Balakrishnan, Chief Financial Officer.

More Stories on : Stocks | Overseas Borrowings | Infosys Technologies Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Himadri Chem plans to raise funds thru shares, warrants


SEBI directive to Dunlop, Falcon Tyres acquirer
Oracle's open offer for i-flex delayed
Infy shareholders approve ADS conversion
Essar completes de-listing of US arm Aegis
Visaka Ind: Closely watched
TVS Motors betting on new variant
Bear domination
Message board
India Infoline up on foreign brokerage interest talk
Mcleod Russel raises Rs 118 cr through QIP to repay debt
Profit taking turns market direction
Binani revives stake sale plan in cement arm


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line