India's second largest software company Infosys Technologies has set $69.90 as the indicative maximum offer price per unit for its upcoming second American Depository Shares issue.

Considering that the company is planning to sponsor 16 million ADS, this price results in an issue size of around $1.11 billion.

Last week Infosys got shareholder approval for sponsoring the ADS issue against its existing equity shares.

In its previous sponsored American issue, Infosys had approved the sponsorship of an ADR issue in the range of 2-3 million shares, equivalent to 4-6 million ADRs.

This issue was oversubscribed, with nearly 200 investors showing interest from the US, Europe and the Far East. As a result of this issue, the company released 5.218 million ADS in the US, increasing its liquidity in that market.

Today's indicative price of the ADS issues shows the size of the issue is over four times the previous issue. In the first issue, Infosys had set a price of $49 per ADS after the stock split. The total size of the issue was $294 million.

Currently, the average trade in Infosys shares in the US market is about 1 million ADS per day. Taking today's indicative price into account, the value of the average trades per day in the US market will be in the order of $70 million.

Prior to the first sponsored issue, the company's float in the US was 3.27 per cent. After the issue, the float increased to 7.9 per cent. The second sponsored issue is expected to take the company's US stock float to nearly 14 per cent.