Rediff.com ADRs Surge 198 Per Cent On Nasdaq

Mumbai, Januray 21: | Updated: Jan 22 2003, 05:30am hrs
Having battered severely on the Nasdaq in 2002, Rediff.com India has emerged as the top performing American Depositary Receipts (ADRs) in the current year 2003, gaining 198 per cent in the last three weeks. Currently, the ADRs of the Mumbai-headquartered internet company, is the top gainer amongst the DRs issued by any overseas company listed on the Nasdaq or the New York Stock Exchange (NYSE).

In the last three weeks, Rediff.com has gained $2.26 or 198.25 per cent to close at $3.40 on January 17, 2003. The internet company quoted at $1.14 as on December 31, 2002. Along with the surge in the ADR price, volumes of Rediff.com have also jumped sharply. As against a volume of 50,000 DRs on December 31, 2002, it spurted to 7,76,000 DRs on Friday.

Following Rediff.com, the other two top performers on US exchanges in the current calendar are Telefonica de Argentina S.A which vaulted 95 per cent and Metrogas SA which gained 69 per cent.

IT analysts said that nothing has significantly changed within the company in the current year, and the rise in the ADR price might be on account of pure value-buying after being dumped in 2002. They said that the rise in the ADR price might also be on the back of a low-base price. When contacted, a company official said, There is no significant change in the business or any reverse split. Nor has any announcement been made by the company in the recent times. We cannot point out any specific reasons for the surge in the ADR price.

Rediff.com doesnt have any domestic listing. The Nasdaq listed Rediff.com is one of Indias leading Internet, communications and media companies serving Indians globally, both online and offline. Through its online and offline products and services, Rediff.com offers interest-specific channels, local language editions, sophisticated search capabilities, online shopping and long distance calling cards.

Rediff.com also has a news publication, India Abroad which is one of the largest South Asian weekly newspapers serving the Indian-American community in the United States.

The company also provides users extensive Internet community offerings all tailored to the interests of Indians worldwide.