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ADR issue report 'speculative': Infosys

Infosys Technologies, India's No 2 software services exporter, described as "speculative at this point of time" a media report that it planned to allow investors to convert Indian shares into American Depositary Receipts.

"The news article is speculative at this point of time," the Bangalore-based company informed the National Stock Exchange on Wednesday.

The Economic Times daily reported that Infosys proposed to allow investors to convert a portion of their domestic shareholdings into ADRs under a recently approved route.

The report also said that the proposed issue could be as large as $100 million.

The Nasdaq-listed company's ADRs are trading at about a 70 per cent premium to the company's domestic shares.

India's central bank said on the weekend companies could offer investors the option of converting their local shares into ADRs or Global Depositary Receipts listed on the London and Luxembourg Stock Exchanges.

It said that such a facility would be available to all categories of investors in proportion to their existing holdings.

But the government's foreign investment panel must clear the proposal, the Reserve Bank of India said.

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