HCL Tech puts ADR issue on hold

BANGALORE, DEC 13: The firm received approval from the Indian government in late November to raise up to $500 million through ADRs. "...

BANGALORE, DEC 13: The firm received approval from the Indian government in late November to raise up to $500 million through ADRs. "But now, the issue is prevailing market conditions and the company is thinking that this is not an opportune time to go to the market," Vineet Nayyar, vice-chairman, told reporters.

Its shares have been a big market outperformer in December, jumping 26 per cent compared to a seven per cent rise in the benchmark 30-share Bombay Stock Exchange in the same period.

The stock was up four per cent at Rs 757 in late afternoon trade on Wednesday while the Bombay index rose 1.63 per cent.

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Nayyar said the company had not decided on which US exchange it would list its shares. "We are looking at acquisitions but we have not finalised any companies," he said.

Nayyar was speaking to reporters in Bangalore to announce the setting up of a software development facility of HCL Perot Systems, an equal joint venture with Perot Systems

HCL Technologies, founded by billionaire Shiv Nadar two decades ago, specialises in developing technologies like embedded software rather than a purely service-oriented approach, analysts said.

Company officials had said the ADR issue was planned to raise funds for investments in joint ventures, setting up of offshore centres and acquisitions.

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Many Indian and other companies, mostly from the information technology sector, have postponed plans to tap the US market due to a global sell-off in tech stocks.

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