Infy ADS issue sold 3 times

India’s IT major Infosys Technologies’ second sponsored American Depositary Shares (ADS) issue has been oversubscribed by three ti...

India’s IT major Infosys Technologies’ second sponsored American Depositary Shares (ADS) issue has been oversubscribed by three times. The company priced its ADS at $67 per ADS, offering 14 million ADS (representing 14 million equity shares) and raising almost $1 billion (around Rs 4,400 crore) from foreign investors.

The price of $67 is at a 2.5 per cent discount to Wednesday’s closing price of $68.75 on Nasdaq and a premium of over 30 per cent to domestic share price of Rs 2,194.90.

The combined holdings of all the shareholders who offered their shares in the Indian invitation to offer was 18,43,07,948 equity shares. The underwriters of the issue have seven days to exercise their option for remaining two million shares under the greenshoe option. The size of the offering will exceed $1 billion.

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As part of this ADS offering, 3.2 million ADS will be placed with Japanese investors through a Public Offer Without Listing (POWL). Infosys is the first Indian company to issue shares to Japanese investors via public offer without listing.

Infosys will not get any proceeds of this offering and the net proceeds after the issue expenses will be distributed to the selling shareholders within 30 days of closing of the offering.