India's second-largest IT company Infosys on Monday announced the voluntary delisting of Infosys ADSs (American Depository Shares) from Euronext Paris and Euronext London following the lower average trading volume on the respective stock exchanges.
India’s second-largest IT company Infosys on Monday announced the voluntary delisting of Infosys ADSs (American Depository Shares) from Euronext Paris and Euronext London following the lower average trading volume on the respective stock exchanges. “Infosys Ltd (“Infosys”) (NYSE: INFY) (Euronext Paris and Euronext London: INFY) announced today that the voluntary delisting of its American Depositary Shares (“ADSs”) (ISIN US4567881085) from the Euronext Paris and Euronext London exchanges has been approved by the Board of Directors of Euronext Paris SA and by Euronext London Ltd,” Infosys said in an exchange filing.
The Bengaluru-based IT behemoth Infosys has cited “low average daily trading volume” as the primary reason for the delisting of Infosys ADSs with regard to the non-fulfilment of “related administrative requirements.” In the span of last five years of the listing of Infosys ADSs on Euronext London and Euronext Paris, it has been found that the average daily trading volume of Infosys ADSs was significantly lower than its average daily trading volume on the New York Stock Exchange (NYSE), Infosys said in a statement.
“There will be no change to the Infosys share/ADS count, capital structure or float as a result of the delisting from the above exchanges. Infosys ADSs will continue to be listed on the NYSE under the symbol “INFY” and investors can continue to trade their ADSs on the NYSE as before,” Infosys said. Further, the delisting procedure will allow Infosys ADSs listed on the Euronext Paris and Euronext London exchanges to be sold on the NYSE, Infosys stated.
Earlier on Thursday last week, 7 June 2018, Infosys Ltd ADR surged 6.16% to settle at euro 15.5 on Euronext Paris and Infosys Ltd ADR ended 0.86% higher at $18.73 on NYSE on Friday, 8 June 2018 while on the Frankfurt stock exchange, Infosys Ltd ADR traded up 2.43% at euro 16.
“Infosys ADSs will remain listed on Euronext Paris and Euronext London until 4 July 2018 inclusive. Thereafter, holders of ADSs who have chosen not to sell their Infosys ADSs through the sales facility or otherwise have not taken any action will be able to trade them on the NYSE under the terms and conditions of their financial intermediary,” Infosys added. Infosys ADSs will be removed from the operations of Euroclear France on 10 July 2018, Infosys said further.