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UTI
mulls converting equity holding in Infosys into ADRs
Bangalore, Dec 3: Unit Trust of India
(UTI) on Monday indicated it is mulling converting its equity
holding in software major Infosys Technologies into American
Depository Receipts (ADRs) to offload them in international
markets.
| We have not
been contacted so far, says Narayana Murthy |
| New Delhi, Dec 3: UTI has not
yet approached Infosys with any proposal to convert its
entire equity holding in the IT company into ADRs for
offloading them in international markets. “UTI has not
yet contacted us on any such proposal,” Infosys chief
NR Narayana Murthy said here. Asked what would be Infosys’
views if it received any communication from UTI on the
subject of conversion of equity into ADRs, Mr Narayana
Murthy said “There is an entire procedure involved in
such plans, including getting government approval. Then
the shareholders would have to meet and give their approval,
or views.” On October 10, the board of directors of the
company declared an interim dividend of Rs 7.50 per share
(par value Rs 5 each).On the same day the company had
said that it was on course to meet revenue and earnings
target for the third quarter and current fiscal. — PTI |
“Nothing has happened till now. But the
thinking process has started. No idea how long it will take,”
Madhav Kumar, UTI general manager (business development and
marketing) told reporters here on Monday.
Mr Kumar was reacting to a query on a reported proposal by
UTI to approach Infosys to convert its equity holding into
ADRs in a move seen as aimed at realising a much higher value
as Infosys ADRs were quoting at about a 70-per cent premium
to the domestic price.
However, Infosys chairman NR Narayana Murthy said that UTI
has not yet contacted the company on “any such proposal.”
According to an Infosys spokesman in Bangalore, UTI currently
holds 5.7-per cent equity in Infosys, which translates to
37,72,035 shares.
The Nasdaq-listed Infosys had reported a 30.87-per cent rise
in its net profit at Rs 201.56 crore for the quarter ended
September.
Mr Kumar asserted that investors’ confidence had not been
shaken in US-64, UTI’s flagship scheme, whose fiasco had stirred
up a major controversy. “Out of an investment of Rs 13,000
crore, only Rs 317 crore had been redeemed,” Mr Kumar said.
— PTI
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