Patni contemplates ADR offering

MUMBAI: Patni Computer Systems Ltd has announced that it is contemplating an offering of American Depositary Shares (ADRs), which will represent the company's newly issued equity shares. The offering is expected to be registered with the US Securities and Exchange Commission. The proceeds of the offering will be used primarily for the construction and development of new infrastructure facilities in India as well as for other general corporate purposes. The offering is expected to be conducted during the second or third quarter of this calendar year and the company will require shareholder approval for the offering.






According to the press release, a registration statement relating to these securities has not yet been filed with the US Securities and Exchange Commission. These securities, if registered, may not be sold nor may offers to buy be accepted prior to the time the proposed registration statement becomes effective.





According to the company, the ADR offering is contingent upon a number of factors, including stock market conditions and the company's and the underwriters' determination as to the appropriate time, if any, for such offering. There can be no assurance that such offering will be completed. Moreover, the number of equity shares to be offered by the company has not been fixed.