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11/21/2006
04:47 PM
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Indian Outsourcer Infosys Floats ADR Issue

The company has floated 30 million of the receipts, worth a total of roughly $1.5 billion.

Indian outsourcer Infosys Technologies Ltd. on Tuesday issued its largest float to date of American Depository Receipts for trading on the U.S.'s tech-heavy Nasdaq stock exchange.

In its third ADR issue since 1999, Infosys floated 30 million of the receipts, worth a total of about $1.5 billion. The company also plans to place 5 million shares out for trading on Japan's stock exchanges.

The moves are widely seen as an effort by Infosys to raise its profile in some of the world's most lucrative equity markets. That should make it easier for the company to raise cash to fund expansion and acquisitions, while raising brand awareness among potential customers in the financial industry.

The Nasdaq ADRs issued Tuesday by Infosys were priced at $53.50. They closed the day at $53.44. Infosys has seen its share price rise about 36% this year on the strength of numerous outsourcing deals with Western companies anxious to tap India's low-cost workforce.

Infosys ADRs trade under the ticker symbol INFY.

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