Huge influx of ADS (American Depository Shares) of Mahindra Satyam into Indian share market is likely to put severe pressure on its stock price.
Though the company said it was going to do transition (from ADS to Indian shares) in an orderly and phased manner, most of ADS would have flown into the BSEand NSE . As of now, ADS represents 10.74 crore or 9.13 per cent of the outstanding equity shares of Mahindra Satyam.
“Continuous selling in the next few months would have an adverse impact. Even if we assume that only one-fourth of ADS would be sold, it would put a lot of pressure on the stock price,” Mr Naushil Shal, Research Analyst at Karvy Stock Broking, told Business Line .
Published on August 9, 2011
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