Demand to tender Infy shares has been strong: ENAM

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Demand to tender Infy shares has been strong: ENAM

The Infosys sponsor ADS is done and you saw the pricing at a moderest discount to the ruling market price, the stock down 1% this morning at Rs 2227. Details of that issue and whether it achieved what’s set out to achieve?

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Infosys ADR issue for USD 30 mn to open tomorrow Infosys gains on second sponsored ADR news Indian ADRs end mixed: Infosys gains over 1% ALSO READ See latest News about Infosys See previous management interviews See what other Experts & Brokerages are saying about Infosys Infosys BSE | NSE 25/05/12 Are Mutual Funds betting on Infosys?

The Infosys sponsored ADS is done and one saw the pricing at a modest discount to the ruling market price. The stock was down 1% this morning at Rs 2227.

Vallabh Bhansali of ENAM Consultants gives the details of the issue and discusses whether it achieved what it had set out to achieve?

Excerpts from CNBC-TV18's exclusive interview with Vallabh Bhansali:

Q: How was the response from the non-promoter category?

A: There has been an all-round response from all categories of investors and the stock has been running up considering that the demand to tender has been strong.

Q: Do you see more companies doing these kinds of deals and Infosys Technologies  too, where they have less of their float in the domestic market and increasingly more in the US market?

A: I think there aren't any other companies, which have tried to put so much of their float in the international markets and this is also a function of the premium. I think given the popularity of India, we could see other companies also doing it.

Q: For someone who is looking to garner more mind space, do you think it is the Far East and Japan that is opening up as the most lucrative market at this point?

A: We have seen that so many things are shifting to the Asian region, capital markets and liquidity included, that issuers will be opportunistic. So I think it's a good thing.

Q: How was the response from the institutional category - the FIIs in this issue?

A: I think it's been good and encouraging. We are seeing a lot of long-term interest in the issue and this was one of the objectives to get more long-term investors into the company, which has been more than fairly achieved.

Q: How do you read the general primary market conditions right now? From the investment banking perspective, do you see many companies seeking to raise capital over the next three months by tapping global and local markets?

A: I think there have been some big transactions and many more are in the pipeline. Reliance itself is raising USD 2 billion in the FCCB market; there are other companies that are being talked of. Global market, except the few are all showing strength and as long as that is there, the world is full of growth. Investment bankers will want to raise more and more money.