India's Satyam Infoway to Offer 3 ADRs More for Each Share Held-Bloomberg
India's Satyam Infoway to Offer 3 ADRs More for Each Share Held Mumbai, Dec. 20 (Bloomberg) -- Satyam Infoway Ltd., an Indian Internet service provider, said it will offer three free American depositary receipts or ADRs to share holders for each held, in a move aimed to boost the market value of the company.
Shareholders of Satyam Infoway, which began trading on the Nasdaq Exchange in October, will as on Jan. 5, receive three additional ADRs for every one they hold on that day. The move will boost the market of the company to $2.7 billion from $696 million.
``The company's equity shares, which are not publicly traded, will not be split. Consequently, four ADR's will represent one underlying equity share,' the company said in a statement. Satyam Infoway is a subsidiary of Satyam Computer Services Ltd.
Satyam Infoway, which last month, bought a 24.5 percent stake for 1.22 billion rupees ($28 million) in IndiaWorld Communications Pvt., that runs a web site for Indians overseas, has also asked the government to permit the company sell more shares on the Nasdaq exchange to help Satyam pay for the rest of the stake.
Satyam hopes to sell up to $115 million worth of shares in the U.S. to help fund the acquisition.
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