sponsored adr issues of infosys

8/3/2019 Sponsored ADR Issues of Infosys

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Sponsored

ADR issues ofInfosys


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What is ADR?

It is a Negotiable security.

Certificates that represents share ofa foreign stock

owned and issued by a us bank.

They buy shares ofthe foreign stock and repackagethem into securities which can be traded on the

NYSE,NASDAQ or AMEX.

The foreign shares are usually held in custody overseas,

butthe certificates trade in the U.S. They provide easy access to gaining international

equities exposure withoutactually having to exchange

currencies and open additionalaccounts to transact in

overseas.


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ADR: Companies/ shareholders

PerspectiveAdvantagesAdvantages::--

Cost effective

Ha

ssel

freeEasy of usage

Risk diversification

Protection of ownership

DisadvantagesDisadvantages::--

Limited selection

Liquidity

Exchange rate risk

Limited diversification


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Summary ofthe Infosys ADRs issued

ISSUE DAY STOCKEXCHANGE

AMT.MOBILIZED

( $ MILLION)

ADR:DOMESTIC

SHARE

% OFSHARE IN

ADR

FORM

ACTUALPRICE/

SHARE($)

1.03.1999 NASDAQ 68

70.4 2:1

30.07.2003 49

294 1:1

09.05.2005 67

1050.13 1:1

21.11.2006

1605 1:1 19.11* 53.5

* % of share in the form of ADRs as on march 31, 2007


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Infosys ADR: 11th March 1999

Size of issue / no. of equity shares 1.8 mn ADS / 0.9 mn equity shares

No. of ADS per equity shares 2

Offer price $27.88 per ADS/ $ 55.76 per share

Actual price obtained $34 per ADS/ $68 per share

Premium on the offer price 22% or $ 6.12 per ADS

Issue amount $61.2 mn.

Green shoe option 15% of 61.2 mn = $ 9.18 mn.

Totalamount raised $ 70.38 mn.

BSE closing price Rs. 3201 as on 10th march 1999

Infosys received net proceeds of U.S. $ 70.38 mn.


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First sponsored secondary ADS:

July 31, 2003

Size of issue/ no. of equity shares 6 mn. ADSs/ 3 $ equity shares

No. of ADS per equity share 2 (after infosys issued bonus shares to

ADS holders, the ADS ratio became

1:1)

Actual Price Obtained At $ 49 per share (26% premium over

BSE closing price)

BSE Closing Price Rs. 3593.30

Total $ 294 mn. Received through 6 mn. ADSs/ 3 mn equity shares

Infosys did not receive any ofthe proceeds


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Second Sponsored Secondary Issue:

May 2005

Size of issue/ no. of equity shares 16 mn. Shares, or 6% of its BSE/NSE

listed shares

No. of ADS per equity share 1

Actual Price Obtained $67 per ADS( 34% premium over NSE

price)

NSE Closing Price Rs. 2171.20 as on may 25, 2005

Total US $294 mn had reicieved by indian shareholders

Total Issue increased the size ofthe US floatto about 14% of its capital

Infosys had not received any proceeds ofthis offering


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Third Sponsored Secondary issue:

November 21, 2006

Size of issue/ no. of equity shares 30mn local shares into ADS

No. of ADS per equity share 1

Actual Price Obtained $53.50 per ADS

BSE Closing Price Rs. 2252 (34% premium over BSE

closing on november 7, 2006)

Total $ 1.6 bn. Received by indian share holders

Total issue incresed US market Cap. Of infosys to $ 5.91 bn.

Infosys did not received any proceeds ofthis offering

sponsored adr issues of infosys

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