Satyam Infoway has hiked the price band for its ADR American Depository Receipt (ADR) offering from US$ 14 earlier to a maximum of US$ 18. This was reported by a leading financial daily.
Satyam Infoway (80% subsidiary of Satyam Computers) was the first private sector company to launch the ISP (internet service provider). As on 30th September 1999, the company offered internet services in 27 Indian cities, with a total subscriber base of 87,000 Internet subscribers.
Satyam Infoway's ambitious debut on NASDAQ seems to highlight that demand for quality Indian paper on American bourses still persists. Infosys' roaring debut on NASDAQ was followed by robust demand for the ICICI ADR. As if on cue, Satyam, which had earlier planned to list in the US$ 12-14 price band, has upped its range to US$ 18 per ADR.
Satyam Infoway is expected to garner up to US$ 60 m from the ADR offering, which will be used to fund network infrastructure expansion and enhancements develop awareness for the company's internet portal business and to advertise and promote the Satyam brand.
Satyam Infoway's ADR plans combined with Infosys and ICICI's strong showing on NASDAQ will be a serve as a benchmark for other Indian companies in general, and software companies in particular. The trend established by these three companies (Satyam Infoway, Infosys, ICICI) seems to indicate that era of high-premium Indian paper is very much on the horizon. While there is no mad scramble for Indian stocks as yet, it has definitely served to create some enthusiasm for Indian paper in the international investor community.
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