Infy glorifies outsourcing; execs rake in more millions

BANGALORE: Infosys, with a market capitalization of $7.1 billion proclaimed from Nasdaq that it is standing as the vanguard of a new trend: that of outsourcing and offshoring becoming mainstream.

A visibly-excited Nandan Nilekani, CEO, Infosys, said that he considered this (Infy’s secondary ADS issue) a larger event than the first time. “In March 99, we had revenues of $68 million. Five years later, we are expecting revenues of $ 1 billion. That is the kind of growth Infosys has seen even with the technology downturn. This demonstrates the validity of our business model apart from its resilience,” he said.

As a testimony to Infy’s business model, the millionaire top executives of the $7.1 billion Infy became richer by a few millions more on Thursday evening. A total of $72 million was shared between 5 top executives of the company from the proceeds of converting locally held shares into American Depository Shares traded on Nasdaq.

Infy’s chief mentor NR Narayana Murthy made $22 million (Rs 101 crore) and Nilekani raked in $15.2 million.

The secondary ADS was priced at a surprisingly low 25 per cent premium of $49 each. (Two ADS makes one Infosys equity share.) Totally 5.2 million ADS were issued of which 30 per cent came in from Infosys’ directors and officers and an equal share from smaller shareholders (less than 1 per cent.)

IRSI reports that Indian ADRs listed at the Wall Street closed mixed on Thursday even as key tech counters added gains on the back of six straight months of positive finish by Nasdaq, the first since 1995.

Infy shot up 5.68 per cent to finish at $53.80, Wipro closed at $23.30, up 2.24 per cent and Satyam rallied 2.48 per cent to $10.75. Silverline, however, slipped 7.43 per cent to $1.62. Sify also closed lower, down 1.13 per cent to $6.15.