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HCL Technologies ADR issue gets nod

The Indian government approved on Friday a proposal by software services firm HCL Technologies to raise up to Rs 22.50 billion ($485 million) through an American depository receipts issue.

A government statement said Commerce and Industry Minister Murasoli Maran had approved the company's ADR issue along with other foreign direct investment proposals worth Rs 26.20 billion. The company, which specialises in software services linked to engineering and microchips, approached the government for permission to raise $500 million by way of ADRs nearly three months ago.

"This is the first step in the exercise. But there is nothing more to it right now. We have not decided on the timing of the issue nor finalised the investment bankers," Vineet Nayar, executive vice-president at HCL Technologies, said.

He said the issue was planned for the firm to make investments in joint ventures, setting up of offshore development centres and in making acquisitions.

HCL Technologies announces its results for the quarter ended September later on Friday.

The firm's shares were quoted at Rs 1,085 in afternoon trade on the Bombay Stock Exchange, up Rs 72.10 from its previous close.

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