Mphasis-BFL plans $50-100m ADR issue

MUMBAI: The directors of India's Mphasis-BFL on Tuesday decided to issue American Depositary Receipts (ADRs) of $50-100 million, the company said in a statement. The company said that the timing of the issue would be decided in consultation with investment bankers.

The board decided to raise the limit on foreign portfolio holdings to 40 per cent, and to make an employees stock option offer of up to 10 per cent of the equity. The board also passed an enabling resolution authorizing the management to proceed with investments in joint ventures with strategic customers. The decisions are subject to approval of shareholders, it said. Mphasis-BFL shares closed at Rs 571 which is lower by Rs 9 lower on Tuesday at the Bombay exchange.

The company was earlier called BFL Software Ltd. It followed the merger of US-based Mphasis Corp, which is expected to be completed by mid-June. Barings India Investment Ltd, a private fund sponsored by ING Group of the Netherlands, holds 52 per cent of BFL's equity and 22 per cent of Mphasis. It will have a 39.7 per cent holding in Mphasis-BFL after the merger is completed.

(C) Reuters Limited 2000.