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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Nandu who wrote (5147)	7/16/1999 1:07:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 12475

India Infosys says unaware of cause of ADR rise BANGALORE, India, July 16 (Reuters) - Indian computer software firm Infosys Technologies Ltd (Nasdaq:INFY - news) said on Friday that it was not aware of the reason behind the rise in its American Depository Receipts (ADRs). Infosys is the only Indian company listed on Nasdaq. ''Other than the earnings release issued on July 9, 1999, the company is not aware of any new development that might be affecting trading activity,'' said N.R. Narayana Murthy, chairman and chief executive officer of Infosys in a statement. biz.yahoo.com

To: Nandu who wrote (5147)	7/16/1999 9:39:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Satyam Infoway files for ADR according to Financial Express. Nandu: You guys may want to keep an eye on this in case there is an interest.I couldn't find anything on 'edgar',perhaps it is forthcoming. ======================== satyam.net.in Saturday, July 17, 1999 Satyam Infoway files ADR offer Aabhas Pandya ---------------------------------------------------------------------- Mumbai, July 16: Satyam Infoway is learnt to have filed its ADR offer document with the Securities and Exchange Commission of the US, according to market sources. However, this could not be confirmed from the company. The Satyam counter had hit the upper end of the circuit on the National Stock Exchange (NSE) at Rs 1,365 while it closed at Rs 1,379 on the Bombay Stock Exchange (BSE) with a volume of 20 lakh shares. Market sources said Satyam Infoway, the first private Internet service provider, is likely to have an ADR issue of $50 million. While Satyam has a 70 per cent stake, Sterling Commerce has acquired a 2.7 per cent stake at $5 million. "With a loss of Rs 21 crore on a gross income of Rs 17 crore for March, 1999, the price paid by Sterling gives a valuation of $200 million. This is in line with the valuations enjoyed by companies like Amazon.com which are still posting losses but have a huge subscriber base. Subscriber base is the key in this business," said an IT analyst. Satyam Infoway has projected a sales of Rs 100 crore for the current year and is expected to break-even. Infosys ADR hits $121 mark Mumbai, July 16: The ADRs of Infosys, rising at a scorching pace, hit another high of $121.875 in Friday's early trading on the Nasdaq. At this level, the ADRs have almost doubled in less than a month when it was trading at around $60. At its Friday's high, the ADRs translate into a value of Rs 10,539 per share. On the Indian stock market, the shares closed on the BSE at Rs 5,110, almost 50 per cent lower than the ADRs. On BSE, the shares have risen by almost 66 per cent over the last one month. Based on the BSE price, the company's market capitalisation is Rs 16,863 crore. In dollar terms, based on Friday's high of the ADR, the market cap is $8.043 billion or close to Rs 34,000 crore. "It is largely Internet trading in the company and not investment-based buying which is the driving the ADR. The ADR has run up from $60 to $120 in a week and investors, who had gone short on the ADR,have run to cover their positions. With a low floating stock, it has only added to the rise in price. The company has also been pegged as the 3rd or 4th IT services company in terms of market capitalisation on the Nasdaq," said a market source. "It has absolutely gone berserk and the ADR does not deserve a price of $120 even by next year's growth forecast. However, what has spurred interest in the ADR is that some investment houses have recommended Infosys ADR as a very strong long-term buy," he said. A number of rumours have also been doing the rounds. "Apparently, the company has indentified some key takeover targets for which money was raised through the ADR. Another is that Bill Gates is buying the ADR while yet another rumour is that they have been able to demosntrate their strength in web-related products," said a market participant.