Bangalore: The board of directors of Infosys Technologies today announced the sponsorship of an international American depositary shares (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 offering size would be between 2 million equity shares to 3 million equity shares (4 million ADSs to 6 million ADSs).
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 (to be intimated later) will be eligible to tender their shares in the offering on a pari-passu basis. Infosys will not be offering any new shares in the offering.
The proceeds of 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.
Infosys' announcement of the sponsorship of an ADSs offering is pursuant to the notification of the Reserve Bank of India (Notification No FEMA. 41/2001-RB dated 2 March 2001) and the operating guidelines issued as per circular AP (DIR Series) Circular No 52 dated 23 November 2002. The offering is also subject to various guidelines issued by India's ministry of finance.