Mumbai, May 31: Videsh Sanchar Nigam Ltd (VSNL) will convert its global depositary receipts (GDRs) into American Depositary Receipts (ADRs) in a one-for-one ratio, a senior official said on Wednesday.The firm's chairman and managing director SK Gupta said VSNL had filed with the US Securities and Exchange Commission (SEC) for issuing and listing ADRs. VSNL is India's monopoly overseas telecommunications carrier and its biggest Internet service provider.
Gupta told a news conference VSNL had sent its application for filing to the SEC. He did not give other details immediately. The firm's shares ended Wednesday down 5.2 percent or Rs 70 at 1,275. The shares are down 61 percent from their February 11 peak of Rs 3,250. In London, VSNL's GDRs were up 0.48 percent at $15.7.
VSNL had floated GDRs in two tranches (1997 and 1999) and the 1997 issue had a lock-in obligation for two years which will be ended in the next couple of months.
This time, though there is no motive to raise funds through ADRs, Sinha said that the listing on NYSE would make VSNL more popular and known among the American investors.
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