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Mahindra Satyam, which has announced ‘winding down' of ADS (American Depository Shares) programme following its failure to conform its accounts to regulatory requirements in the US, has held out three options for the shareholders.
ADS holders in the US, who are not able or eligible to open brokerage accounts in India to convert the shares into their Indian equivalents, do not have to worry much. After the termination of the Depository Agreement (notices for which would be sent soon by the company), the company would hold such shares in a specific account. Citibank would convert all such shares into Indian equity shares, sell them and pay back the original holders proportionately. This, however, is after paying relevant taxes in India.
ADS holders could also trade off their shares in the OTC market during the wind-down period or open a brokerage account in India, convert them and sell or retain such shares.Satyam's ADS closed at $3.03 in OTS (over-the-counter) trading, down by 0.03 over previous close.
IN BLACK
Meanwhile, the company reported a net profit of Rs 225 crore in the quarter ended June 30, 2011 against a loss of Rs 327 crore in the preceding quarter.With global economic situation turning bleak, the company said it might reconsider its earlier hiring plan.
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