Information Technology major Infosys Technologies on Monday said it will convert 16 million shares traded in India into American Depository Shares that would increase the float of its stock in the US stock market.
Infosys board took the decision to offer another sponsored secondary ADS issued against its existing equity shares on Monday morning.
The company informed the Bombay Stock Exchange that it would convert a maximum of 16 million shares into ADS, including a green shoe option.
There will be no fresh issue of shares nor will Infosys take any proceeds from the secondary ADS, its second in the last two years.
The Infosys ADR, being traded at a premium of over 50 per cent in the last six months closed at $65.55 on Friday and with this, the fresh offer is valued at over $1.04 billion.
The Bangalore-based software exporter offered six million ADS in August 2002, equivalent to three million equity shares at a price of $49 per ADS. The total size of the offering was $294 million.
In April 2004, the NASDAQ-listed Infosys made one equity share equivalent to one ADS following a bonus issue of 1:3. A sponsored ADS is meant to infuse liquidity in overseas stock markets by converting local shares into ADS.
The secondary ADS will be implemented following approval by shareholders in an extraordinary general meeting to be convened by Infosys soon.