The board approved a proposal of the company to access international markets by way of American Depository Receipts (ADRs) or Global Depository receipts (GDRs) or other financial instruments. The amount can be raised in one or more tranches.

The exact size of the issue will be based on available opportunities to expand the company's business operations in the optical fibre, optical components (Photonics) and other related businesses through strategic partnership or acquisition. The company will gauge the market conditions before tapping it, the company informed the Bombay Stock Exchange (BSE).

The issue is a major move towards the company being listed internationally. The international listing will also pave the company's way to be acclaimed as an international optic fibre cable (OFC) company. The SOTL scrip on the BSE opened at Rs 979 after touching an intra-day high of Rs 975 on Wednesday. The scrip closed at Rs 943, a fall of 3.7 per cent against its previous close.

The company recently announced plans to put up a 10 million cable km optical fibre greenfield plant at an estimated cost of $250 to $300 million. Nearly 75 per cent of the new project is to be funded through internal accruals.SOTL had already announced its intentions to set up its base in the US. Almost 90 per cent of its revenue come from exports.

The expansion is in view of the high demand growth for optical fibre in all major international markets. The expansion will enable SOTL to offer larger volumes to strategic international customers on a long term basis.

The first phase, with a capacity of 5 million kilometer, will go onstream by 2002. SOTL is targeting the high growth US markets for exports. Global prices have increased in the past months from a low of $25 per fibre kilometer to the current level of over $65 per fibre kilometer. The market is said to be in an extremely tight demand-supply situation with demand on the higher side.