• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Hyderabad , Jan.7

SATYAM Computer Services has announced that its shareholders have approved the proposal of a sponsored American depository shares (ADS) issue, which will increase the total float to 20 per cent of the equity overseas from 10.5 per cent now.

This ADS offer, announced in December, is to be issued against the existing equity shares of the company, following an extraordinary general meeting held here on Friday.

Consequently, this issue will not exceed 30 million equity shares, equivalent to 15 million ADS, approximately $360 million, including a greenshoe option, if any.

Speaking to Business Line, the Chief Financial Officer of Satyam Computer, Mr. V. Srinivas, said the Satyam ADS that currently trades in the New York Stock Exchange constitutes about 10.6 per cent of the issued capital. With the current issue offer, it could see an addition of about 9.5 per cent, thereby, taking it to 20 per cent post issue.

"We will approach the Securities and Exchange Commission of the US and seek their approval for the proposed offer. We expect to receive approvals by early March and possibly complete the process before this financial year (March end)," he said.

On the importance of the proposed ADS offer, Mr Srinivas said this would be a win-win situation for the company, its shareholders and also for building its brand image.

The shares traded here will now move over to the US markets and more foreign institutional investors will acquire them.

Based on these developments, we expect a larger community of analysts covering the company, thereby helping in brand building and company visibility, he said.

"Typically, we expect FIIs to actually sell some of their holdings and buy them overseas. However, these FIIs could later purchase them again from the domestic market. However, we don't expect the overall holding to cross the current 65-66 per cent mark," said Mr Srinivas.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Pervasive Soft opens R&D centre in Bangalore

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line