The Telegraph
Since 1st March, 1999
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American holding in Infy set to go up

New Delhi, Jan. 27: The government today approved the proposal of Infosys Technologies Ltd to increase its American depository shares (ADSs) shareholding from 3.25 per cent to between 6.27 per cent and 7.78 per cent amounting to Rs 1,430 crore to Rs 2,145 crore.

Last month, the board of directors of Infosys Technologies Ltd had announced sponsorship of an international ADS offering, against equity shares held by its existing shareholders in India, at a price to be determined by the lead manager to the offering.

The board also decided that the offer size would be between two million equity shares to three million equity shares (four million ADS to six million ADS). The company spokesperson said that the company will convene an extraordinary general meeting (EGM) of its members in due course to seek approval for the proposed offering.

All shareholders as on the record date would be eligible to tender their shares in the offering on a pari-passu basis. Infosys has over 13,000 employees in over 30 offices who are also major shareholders in the company. Infosys will not be offering any new shares in the offering.

The proceeds from the secondary offering, after meeting the issue expenses, will be proportionately paid to the shareholders of Infosys who have deposited their equity shares for the purposes of the offering.

Infosysí announcement of the sponsorship of an ADS offering, is pursuant to the notification of the Reserve Bank of India and is subject to various guidelines issued by the finance ministry.

This does not constitute an offer of any securities for sale by Infosys. A registration statement relating to these securities has not yet been filed with the United States Securities and Exchange Commission. Pursuant to US rules and regulations, no securities may be sold nor may offers to buy be accepted prior to the time a registration statement becomes effective.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy registered securities nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Infosys is a leading consulting and information technology services company and partners with Global 2000 companies to provide business consulting, systems integration, application development and product engineering services. Through these services, Infosys enables its clients to fully exploit technology for business transformation. Clients leverage Infosysí Global Delivery Model to higher quality, rapid time-to-market and cost-effective solutions.

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