SKINDIA INDIAN GDR MONITOR
Volume VI No 33	Aug 13-Aug 19, 1999	20-Aug-99

Pre-election opinion polls bring cheer to the markets Although the markets started on a weak note it turned bullish with the news of the opinion polls indicating the possibility of a stable majority government after the elections.The Skindia GDR Index gained 4.51% and BSE sensex 1.57% on Monday and continued to gain strength till the bears took over on Thursday bringing down the markets. At the end of the week the Skindia GDR Index gained 25.13 points & the BSE sensex 86.42 points moving in a wide band of 6.00% & 4.84% respectively. The average spreads of the 40 most actively traded DRs reduced to 7.16% on Aug 19 from 7.42% on Aug 13 and the average premiums of the 63 DRs moved up to 1.96% on Aug 19 from 0.69% on Aug 13 indicating a positive sentiment. During the week the 63 DRs on an average gained 10.77% and the underlying shares 9.77%. Pharma sector was the top gainer in the DRs appreciating 27.78% followed by textile & fertiliser sectors gaining 13.28% & 12.32% respectively. The only two losers were the hotel & telecom sector depreciating 3.04% and 1.59% respectively. On the other hand in the underlying shares the top gainer was the steel sector rising 25.08% followed by aluminum & textile gaining 17.74% & 15.03% respectively. The only loser was the IT sector losing 22.98%. New Issues: After the success of Infosys in ADR markets a number of companies are planning to go for their ADR/GDR issues. Satyam Computer in a bid to retire it's debt has decided to go for a two-stage fund raising program which will culminate with an ADR issue of the company commencing towards the beginning of the next financial year. The proposed ADR is to accelerate its growth process of being a global solution provider and to issue stock options to its overseas employees. Pentafour Software proposes to make some acquisitions abroad & raise US$60m through issue of ADRs, GDRs & other securities & the proposed issue might come through in the last quarter of 1999-2000. State Bank of India is also slowly preparing the grounds for an ADR issue next year.The fresh capital raising plan is in line with the banks decision to keep its capital adequacy ratio at 12% levels at all times. ICICI Ltd proposes to make a triangular $500m equity offer including $115m preferential issue to the three FIIs LIC, GIC & UTI which collectively hold 32.8% stake in the company, $70m (plus 10% green shoe) public offer and an overseas $315m GDR/ADR offer . MTNL is expected to be listed on the New York Stock Exchange by late November-early December. The company is planning to partially convert its outstanding GDRs into ADRs.

DISCLAIMER : Factual material is obtained from sources believed to be reliable and SkindiaFinance is not responsible for any errors and omissions contained herein. Any recommendation contained in this report may not be suitable for all issuers.