IT major Infosys took the markets by surprise on Friday when it announced moving the listing of its American Depositary Shares to the New York Stock Exchange from NASDAQ.
The company is also seeking to list its ADS on the Paris and London exchanges of NYSE Euronext later.
“Our decision to transfer our American Depositary Shares listing to NYSE is motivated by a desire to leverage the NYSE Euronext partnership to empower our investor base, increase access to our stock for European investors and broaden the trading window available for our global investors,” Infosys CEO and Managing Director S.D. Shibulal said in a statement released late in the evening. Infosys ADS will begin trading on the NYSE Euronext markets in the US under the ticker symbol ‘INFY’ on December 12. Until the transfer is complete, Infosys ADS will continue to trade in the US under the ticker symbol ‘INFY’ on the NASDAQ.
The NYSE Euronext listing will not change Infosys’ float, share/ADR count and capital structure. Another Indian IT major, Wipro is already listed on the New York Stock Exchange.
“European business for peers such as TCS, HCL Tech and Tech Mahindra is higher than Infosys and with 75 per cent of business coming from US, it wants to have a better revenue mix,” said A.K. Prabhakar, Head Equity Research, Anand Rathi.