ADS success underscores GDM, says Infy

BANGALORE: IT services major

Infosys, attributed the huge success of its secondary sponsored ADS worth

over $one billion, to the growing acceptance of the Global Delivery Model (GDM).

Speaking to reporters in a

conference call yesterday, Infosys CFO Mohandas Pai said, “It shows that

the GDM has become mainstream and investors are understanding the role played

by Indian companies.”

Pai said that the acceptance

ratio for the ADS was 8.3 shares for every 100 shares that were tendered.

A historic first for India

and Infy, the eight times oversubscribed ADS issue, was the first time that an

Indian company offered its shares in the Japanese market via POWL (Public Offer

without Listing).

Akin to the US response, Japanese investors also lapped up the issue and Infy saw three times the demand in that market. Around 20 percent of the 16 million shares was offered to the

Japanese market while the rest was spilt between institutional investors and

retail investors.