BANGALORE: The shareholders of Infosys Technologies Ltd. on Tuesday ratified a proposal for converting 30 million equity shares into American Depository Shares (ADSs) in a bid to increase the liquidity of the company's shares in the U.S. stock market and enter the coveted Nasdaq 100 index.

At present, foreign institutional investors (FIIs) hold 36 per cent stake in Infosys and ADS holders around 14 per cent. About 13.95 per cent of the total company shares are listed and traded outside India.

If the sponsored secondary ADS issue is fully subscribed, the floating stock in overseas markets would go up from 13.95 per cent to 19.35 per cent, V Balakrishnan, Chief Financial Officer, Infosys, said here.

N. R. Narayana Murthy, Chief Mentor, said the price of the ADSs would be decided after underwriters decide the value offered by institutional investors. He said the planned ADS issue was part of the company's ambition to get into the Nasdaq-100 index, raise brand equity in the U.S. and win more customers in a market that provided more than 60 per cent of the company's revenues. As part of this offering, the ADS would be placed with Japanese investors through a public offer without listing (POWL).

"We want Infosys to be the first Indian company to get into the Nasdaq index. That particular journey requires that we enhance the liquidity in the U.S. This exercise is part of reaching that goal. I hope at some point of time we will become the first Indian company to be listed on the Nasdaq-100,'' Mr. Murthy, who is also the non-executive Chairman of Infosys, told shareholders at the extra-ordinary general meeting (EGM) held here.

The Nasdaq index includes 100 of the largest U.S. and international non-financial securities listed on the exchange based on market capitalisation.

At the EGM, a section of the shareholders expressed concern over the ADS issue and wondered whether such exercises were a prelude to the company being fully-owned by foreigners, but Mr. Murthy said Infosys believed in "globalisation'' and "openness.''

"We have to get more and more clients outside India and we have to enhance our brand equity. For that a lot of large firms' chief financial officers must feel comfortable about us. They have to see us on their stock exchanges. Then they will say we are here to stay. If we want to become even bigger then it will help being part of a global index. We are moving towards reducing friction to business. This is one of the instruments to reduce friction,'' he said.

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