Infosys Technologies on Tuesday secured shareholders' approval for the issue of its third sponsored American Depository Shares.
The issue will be worth $1.55 billion, based on Infosys' Monday's closing price of $51.66. It will be the largest ADS issue by an Indian firm and will enable Infosys to break into the Nasdaq-100 Index.
Amid concerns of overseas shareholders dominating the Indian company, Infosys shareholders approved the conversion of up to 30 million shares into stock to be traded in the Nasdaq. The timing of the issue will be decided later.
Infosys' first overseas issue was $300 million in 2003, followed by a $1 billion offer in 2005.
With this issue, the overseas float of Infosys' stock will increase by 5 percentage points to 19 per cent. The board of Infosys also decided last month that as part of this offering, ADS will be placed with Japanese investors through a public offer without listing.
"I hope at some point of time we will become the first Indian company to be listed in the Nasdaq-100. This will require us to have more liquidity in global markets and this sponsored ADS issue is a step in that direction," Infosys Chief Mentor NR Narayana Murthy said.
Global companies required global investors and there was no need to worry over the issue of overseas investors' holding exceeding that of Indians, Murthy added.
All equity shareholders will be eligible to offer their equity in the offering on a pari passu. The company will not issue new shares through the offering. The proceeds of the offering, after meeting expenses, will be proportionately paid to the selling shareholders.
