Advertisment

Shareholders give nod for Infy's ADS

author-image
CIOL Bureau
New Update

BANGALORE: On December 18, at an Extraordinary General Meeting (EGM), held in Bangalore, software heavyweight, Infosys got the go ahead from its shareholder community to transfer 16 million equity shares to increase its float on the Nasdaq. This move would increase the company's current stock traded on NASDAQ of 7.9 percent of the total stock to 14 percent. At present, around 21.24 million shares of the total 267.86 million shares are listed on Nasdaq. The size of the proposed offering is around $ one billion.



The sponsored ADS, the second for the company, is aimed at enhancing liquidity in the overseas market. Joining in to the meeting via videoconferencing from Thailand, Infosys chairman NR Narayan Murthy said, " We would like to continue to build the global Infosys brand and increase the liquidity of stock on Nasdaq. We want to get written about by stock analysts to be the "prime stock" and not just an emerging one."



As part of the issue, the company also plans a public offer with out listing in the Japanese market, informed Infosys senior VP, finance and company secretary, Balakrishnan.



Infosys president and CEO Nandan Nilekani said that there would be no new issue of shares from the company. All Indian shareholders would have the pari passu right to participate in the offering, the pricing of which would be determined by underwriters.



In January-February 2005, the company would decide the pricing for the offering to overseas investors after consultations with the lead managers.



Around 21.9 percent of the Infy stock is held by the company's promoters, 40.5 percent by FIIs, 20.77 percent by the public while others consisting of FIs, mutual funds and OCBs hold the rest (16.75 percent).

tech-news