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Silverline ADS issue priced at $25 on NYSE

Our Bureau

MUMBAI, June 20

SILVERLINE Technologies Ltd, whose American Depository Share (ADS) issue made a debut on New York Stock Exchange on Tuesday, announced the issue price at $25 each.

The ADS price of $25 compares with the price of $19.68 on the preliminary prospectus, said a statement from the company.

This is at a discount of over 11 per cent to the domestic price of the scrip.

Silverline closed at Rs. 637.95 per share on BSE on Tuesday, rising by Rs. 10 over the previous close of Rs. 627.15. One ADS being equivalent to two domestic shares, the corresponding domestic share price equivalent works out to $28.32.

The company priced five million ADS consisting of 4.35 million primary ADS and a 15 per cent greenshoe of 6,50,000 ADS, said the news release.

The general market perception was that the trading price would end higher than the listing price on unofficial information that the ADS had been oversubscribed several times, although there was no communication from the company on this.

``It is a successful listing,'' said a software analyst with a broking firm.

Silverline is the first Indian technology company to list on New York Stock Exchange, it said.

The funds raised would go towards not only expansion of its existing facilities, but also its acquisitions, two of which are reportedly in the pipeline.

Recently, the company had acquired CIT Inc, an international e-business solutions and services company, with a presence in Canada and in West Asia.