Wipro clears $500 mn ADR/GDR issue

MUMBAI, MAR 28: The board of Indian diversfied firm Wipro Ltd has cleared a proposal to issue American Depositary Receipts (ADR) or Global Depositary Receipts (GDR) upto $500 million, the Bombay Stock Exchange (BSE) said on Tuesday.

The Wipro board also cleared submission of an application to the Reserve Bank of India seeking blanket permission for making overseas acquisitions through cash or stock swaps upto $500 million before the issue of shares overseas and upto $10 billion using proceeds of the issue afterwards, the BSE added.

Wipro joins the list of over 20 Indian companies which have already announced plans to tap the US markets with an ADR issue. Wipro is one of India’s leading software companies. It also has interests in consumer products.

The Indian government recently relaxed rules giving more freedom to knowledge sector companies for making overseas acquisitions. News of an impending ADR issue has sent Wipro’s shares soaring. On Tuesday, the stock closed at Rs 6,009.25 at the Bombay Stock Exchange, surging 39 per cent in five days.