India’s tech blue chip Infosys Technologies was battered on Nasdaq Stock Market of the US on Friday following the announcement that its board would consider another sponsored ADS issue.A sponsored ADS issue would mean that there won’t be any equity dilution. In this case, shares tendered by domestic shareholders will be sold abroad. The Infosys ADS, traded under the symbol Infy, tumbled by 6.5 per cent to settle at $ 65.59 on Friday. It rose slightly in after hours trade to $ 66.27.Indian markets didn’t have a clue of what was lying ahead for Infy on Nasdaq. Infy slipped from Rs 2,001.90 to a low of Rs 1,962.65 before settling at Rs 1,976.10, down 0.61 per cent from its previous close. Infosys announced on Friday that its board would meet on November 8 to consider a sponsored secondary ADS offering against existing equity shares.Infosys’ second sponsored ADS issue will mean that the supply of shares on Nasdaq will go up. The Infy ADS commands a huge premium to the domestic share’s market price. At the current price of $ 65.59, the Infy ADS trades at a massive 50 per cent premium over the scrip’s current market price of Rs 1,976.10 on the BSE.
