Date:29/05/2005 URL: http://www.thehindubusinessline.com/2005/05/29/stories/2005052900950200.htm

Back Underwriters exercise allotment option of Infosys ADS offering

Our Bureau

Bangalore , May 28

THE underwriters to Infosys Technologies Ltd's sponsored secondary ADS offering have exercised the over allotment option on May 26 to purchase up to two million additional ADS representing an equal number of shares at $67 each.

By this count, the company has converted a total of its 16 million Indian shares into US stock and the total issue size exceeded a billion dollars.

After the company announced the ADS pricing, the Infosys ADR on Nasdaq appreciated over 5 per cent to close at $70.50 on Friday. Post issue, the volumes of Infosys ADS traded on Nasdaq have also seen a spurt. On Friday a little over 13.54 lakh ADS were traded on Nasdaq as against the three-month average volumes of 6.78 lakh.

On the Bombay Stock Exchange, Infosys closed at Rs 2,231.75 on Friday, a gain of 1.38 per cent over the previous close of Rs 2,201.45. Over the last one week, the Infosys stock has gained by over 7 per cent on the domestic exchanges.

The recent issue was the second sponsored ADS issue from Infosys Technologies. The company first floated an ADS issue and listed on Nasdaq in March 1999. Each ADS sold at $34 then grew to four ADSs after the stock split and bonus issue.

Last year, Infosys came out with its first sponsored ADS offering wherein shareholders sold their shares at $49 each. About 21.24 million ADS representing 7.9 per cent of Infosys' equity were already traded on Nasdaq. The latest issue has increased the overseas float of the company's stock to 14 per cent of its equity capital. This is expected to enhance the visibility of Infosys in the US market, from where the company derives about 65 per cent of its revenues.