Infosys ADR prices at 53.50 dollars per share
India's Infosys announced its price of 30-million-share conversion into ADR at 53.50 dollars per share.india Updated: Nov 21, 2006 13:11 IST
India's second-largest software exporter, Infosys, which is striving to raise its global profile, announced on Tuesday that it had priced its 30-million-share conversion into American Depositary Receipts (ADRs) at 53.50 dollars per share.
Based at India's technology hub Bangalore, Infosys Technologies said the total size of the sponsored American Depository Receipts (ADRs) offering would exceed 1.6 billion dollars.
Earlier this month, shareholders approved the conversion plan which Infosys officials said was part of a bid by the software giant to become the first Indian company to enter the tech-heavy US Nasdaq 100 index.
The pricing of the ADR offer was determined by underwriters following a roadshow.
The Nasdaq 100 index is made up of the largest domestic and international non-financial securities listed on the exchange based market capitalisation.
The company which is already listed on NASDAQ said five million ADRs would be placed with "Japanese investors through a public offer without listing."
"Infosys will not receive any proceeds of this (total) offering and the net proceeds after the offering expenses will be distributed to the selling shareholders," the firm said.
The company said that to enter the Nasdaq index it must "enhance the liquidity in the US" and that the issuing of ADRs was "part of reaching that goal." It has not said when it expects to be able to enter the Nasdaq 100.