Bangalore, Oct 11 (IANS) Software major Infosys Technologies Ltd has decided to offer 30 million sponsored secondary American depository shares (ADSs) to increase its float on the Nasdaq stock exchange where it is listed and traded.
'The company's board of directors has given approval to offer a maximum of 30 million equity shares for the sponsored secondary issue of ADSs,' Infosys CEO Nandan M. Nilekani told reporters here Wednesday.
'Due to regulatory issues, we will not be able to share more details,' he added.
It will be third time in as many years when the global software firm goes for a sponsored ADS issue to increase its liquid stock on the Nasdaq by another five percent.
'With a float of 77 million ADSs currently, about 14 percent of the company's total stock of 556 million Indian equity shares is traded on the Nasdaq at $50 per share,' Infosys CFO V. Balakrishnan told IANS.
'The third sponsored issue will increase the float to 107 million ADSs, accounting for 19 percent of the total stock. At the current market price, we will be able to raise about $1.5 billion,' he added.
The previous two ADS issues were sponsored in 2005 and 2003 raising $1 billion and $300 million respectively. The first issue was in July 2003 for 5.2 million ADSs, representing 26 million equity shares before the stock split. They were offered for $49 per ADS.
As on Sep 30, the company's market capitalisation was $26 billion or Rs.1,028 billion. In India, its shares are traded on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
Earlier, in a statement to the BSE, the company said the ADSs would be placed with Japanese investors through a public offer without listing (POWL).
'The board has convened an extraordinary general meeting (EGM) Nov 7 to seek approval of the shareholders for the offering,' the company said.
The decision to go for a fresh sponsored issue of ADSs comes in the light of the company's efforts to enter the prestigious Nasdaq 100 club, with increasing float and higher market cap.