Infosys, India’s second-largest software exporter, on Monday, announced plans to delist its American Depository Shares (ADS) from the Euronext Paris and Euronext London exchanges because of low trading volume.
“The primary reason for seeking the proposed delisting is the low average daily trading volume of Infosys ADS on these exchanges, which is not commensurate with the related administrative requirements,” according to a statement from the Bengaluru-based company.
During the five-year period of the company’s listing on Euronext Paris and Euronext London, the average daily trading volume of the company’s ADS had been significantly lower than its average daily trading volume on the New York Stock Exchange, the statement said.
Awaits approval
The planned delisting is subject to approval from Euronext Paris S.A. and Euronext London. “There will be no change to the Infosys share/ADS count, capital structure, and float, as a result of the proposed delisting from the above exchanges. Infosys ADS will continue to be listed on the NYSE under the symbol ‘INFY’ and investors can continue to trade their ADS on the NYSE as before,” the statement added.
After exchange approvals, a sales facility will be provided by the company to the holders of ADS trading on the Euronext Paris and Euronext London exchanges.
ADS holders who opt for the sales facility will be able to sell their ADS on the NYSE in accordance with Euronext Paris and Euronext London rules, according to the statement.
