Infosys opts for greenshoe option in ADS offer

Infosys Technologies Ltd, the Bangalore-based global IT major, which has sponsored the secondary American depository shares offer recently, has favoured to exercise the greenshoe option of buying the 782,000 shares representing 391,000 Indian equity shares in the wake of the issue's oversubscription by over four times.

In a communique to the US Securities Exchange Commission and the Bombay Stock Exchange on Monday night, the company disclosed that it had directed its underwriters to offer the remaining ADSs on the Nasdaq, where its scrip Infy is listed for trading.

As a result, the secondary offer will meet the target of sponsoring 6 million ADSs representing 3 million equity shares and valued at $294 million.

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Under the terms and conditions of the ADS offering, the Rs 3,625 crore (Rs 36.25 billion) company had the right to opt for the greenshoe option in case of oversubscription within in a week of closing the issue date.

The secondary shares were listed on the Nasdaq for trading on July 31 with a offer price of $49 per ADS.