Date:07/12/2004 URL: http://www.thehindubusinessline.com/2004/12/07/stories/2004120701270500.htm

Back Satyam board to consider special ADS issue

Our Bureau

Hyderabad , Dec. 6

SATYAM Computer Services Ltd, the software services provider, on Monday announced moves to consider a special sponsored American Depository Shares issue.

A meeting of the Board of Directors of the company has been convened on Wednesday to consider the ADS issue. However, details of the issue, its nature and size have been kept under wraps.

The New York Stock Exchange-listed software company earlier today intimated the BSE about the board meeting and its proposal to consider the ADS issue.

The company officials had earlier in the year hinted at the possibility of such an offer during its quarterly results and maintained that this would be aimed at enhancing the company liquidity.

It may be recalled that the company had come up with its ADS offer in May 2001 and offered 16,675,000 shares at the rate of $9.71 per ADS, wherein one ADS was equivalent to two equity shares.

The company had raised about $160 million including the proceeds from the Greenshoe option, and thereafter listed on the NYSE in May 2001. The scrip is traded with SAY symbol. Infosys Technologies Ltd announced a similar decision recently.

About 10.63 per cent of the total 31.75 lakh shares are part of the NYSE listing. While the promoters' holding constitutes about 16.23 per cent, FIIs hold about 54.04 per cent stake and 5.61 per cent shares are held by the Indian public and mutual funds and banks account for about 10.5 per cent.