Infosys Beats EDS, Tops Indian Cos In ADR M-cap Sweepstakes

Chennai, November 28: | Updated: Nov 29 2002, 05:30am hrs
The recent spurt in the price of the American Depository Receipts (ADRs) of Infosys Technology Ltd (Infosys) has resulted in a record of sorts. Infosys has emerged as the countrys most valuable company in terms of market capitalisation (M-cap) based on its ADR price. It has raced ahead of its domestic rival Wipro and beaten old economy majors like ONGC, HLL and Reliance. Also, Infosys M-cap has surpassed that of EDS, the second largest IT services firm worldwide.

Infosys enjoys a market capitalisation of $10.85 billion or Rs 52,099 crore at $81.98 per ADR. Infosys has beaten Wipro whose M-cap is $2.67 billion lower at $8.18 billion (Rs 39,302 crore). Other old economy firms such as the ONGC and Reliance have a lower mcap at Rs 49,757 crore and Rs 30,629 crore respectively.

The continued strength of Infosys ADRs had lead to the firm topping the M-cap sweepstakes. The ADR trades at a premium of about 70 per cent to the domestic price. It has had a dream run during the last month and the price has gone up from about $50 on October 1 to close to $90 in end-November. There has been a minor correction and stock closed Wednesdays trading session on the Nasdaq at around $82, said an analyst with a domestic brokerage firm.

The M-cap of Infosys is about $2.2 billion higher than that of EDS, which stands at $8.65 billion (Rs 41,548 crore).

Infosys racing ahead of EDS in terms of mcap is testimony to the faith foreign investors have in the Indian offshore model. While EDS reported poor quarterly results, Infosys numbers pleased the market. There is a very clear shift in customer preference towards offshore players with bases in India, the analyst explained.

However, based on prices in the Indian market, Infosys still lags behind Wipro and a few other old economy titans.