DRs of Indian Hotels, Infy, Ispat trade at premia to domestic prices

Our Markets Bureau

Mumbai, Aug 28: INFOSYS, Indian Hotels and Ispat Industries topped the list of some 58 of the 72 depository receipts of Indian corporates listed overseas which are currently trading at premium to their prices of domestic shares of these companies.

Over the last three months, the average premium on these DRs increased by 29.45 per cent despite a fall in the Skindia GDR Index (SGI). As on August 23, 2001, 58 out of the 72 DRs were trading at a premium.

Ranbaxy Laboratories’ ADR, which was up last week by 5.86 per cent to quote at $14.90, was the top Skindia index gainer while Satyam Infoway (down 32.05 per cent to $1.06) was the worst hit during the week ended August 24, said Instanex Capital that tracks the overseas listed DRs. The top premiums as on Aug 23, 2001, were on Infosys Technologies (ADR) which was at a premium of 54.76 per cent, while its ADR was at Rs 5,799.82. Its share price was at Rs 3,747.70.

This is followed by Indian Hotels and Ispat Industries which were at a premium of 53.53 per cent and 45.02 per cent. The Deposit Receipts of Indian Hotels was at Rs 283.96 while its share was at Rs 184.75.

The top discount as on August 23, 2001 were DCW which was at a discount of 24.59 per cent, while its DR was at Rs 3.77 and its share price was at Rs 5. This is followed by Sanghi Poly and NEPC India which were at a discount of 14.31 per cent amd 10.84 per cent. The share price of Sanghi Poly was Rs 1.65 while its DR was at Rs 1.41. For NEPC India, the share price was at Rs 1.85 while its DR was at Rs 1.65.

During the week, seven of the 11 ADRs reacted positively to the US Fed Rate cut of 0.25 per cent on August 21, 2001. The biggest gainers were Rediff (20.79 per cent of $1.22) followed by Dr Reddy’s (18.50 per cent to $24.20) and HDFC Bank (up 7.87 per cent to $ 16.72).