India's Satyam ADRs rise sharply after offering- Reuters.
Tuesday October 19, 11:50 am Eastern Time
India's Satyam ADRs rise sharply after offering
NEW YORK, Oct 19 (Reuters) - Indian Internet firm Satyam Infoway Ltd. (NasdaqNM:SIFY - news) ADRs, or American Depositary Receipts, rose sharply after its ADR offering Tuesday, benefiting from enthusiasm about the Internet sector and India.
The second largest Indian Internet provider based on customers raised $75.15 million after offering 4.175 million ADRs at $18, the top end of its expected price range.
Satyam, which has 91,000 subscribers, offers an on-line portal, content, access services and corporate network and technology services.
Its shares were up 15-1/2 at 33-1/2 near midday with 2.9 million shares changing hands on the Nasdaq.
``It's all hot,' said one Asian ADR trader, referring to the Internet and infrastructure sector. ``There's also a lot of uncertainty and volatility elsewhere in the world, but India is insulated and its domestic economy is booming and its political situation has been resolved.'
Venture capitalists have taken a closer look at India's technology and Internet firms and expect more offerings.
``We are at the beginning of the wave,' said Sameer Gandhi at Sequoia Capital, likening the recent development of Indian technology and Internet firms to the movement seen a couple of years ago in Israel when firms kept research and development in Israel and listed on U.S. exchanges.
``They have the same dynamics: a high number of trained professionals, good infrastructure and English-speaking population,' Gandhi said. ``What I imagine seeing more of are companies like the Israeli model. They start up (in India) and introduce themselves to the U.S. when they are ready. We are very interested in those models.'
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