SKINDIA INDIAN GDR MONITOR
Volume VI No 38	Sep 17-Sep 23, 1999	24-Sep-99

Nervous Markets- Skindia GDR loses 2.32% This week contrary to the up swing in the domestic bourses the GDR markets closed weaker.The BSE sensex gained 164.72 points while the Skindia GDR Indexlost 20.15points. During the week the premiums of the 63 DRs on an average fell down to 6.99% on Sep 23 from 8.15% on Sep 16 & the average spreads of the 40 most actively traded DRs narrowed to 6.68% on Sep 23 from 7.32% on Sep 16. Over the week the 63 DRs lost 1.46% & the shares 0.03%. In both the DRs and the underlying shares the top gainer was the IT sector gaining 13.53% & 19.93% respectively. The IT rally being lead by Infosys, touching its all time high of $138.25 on 21st Sept. Auto sector was the major loser losing 11.17%. ICICI Ltd listed on NYSE. ICICI on 22nd Sept created a history of sorts by being not only the first Indian but the first non Japanese Asian company to be listed on the New York Stock Exchange. It opened at $11-11.25 per ADR, a hefty premium to its offer price & further gained ground the next day, & was quoted at $12 up 8.47% over its first days close of $11.06. 1ADR represents 5 underlying shares. Their $315m American Depository Receipt issue managed by Morgan Stanley Dean Witter & Co and Merill Lynch & Co, was oversubscribed four times. The issue priced at $9.8 per ADR attracted a final demand book of $1.6bn. The issue attracted 75% of its demand from Asia & the US, with around $300m coming in from retail investors alone. The remaining $1.3bn came in from 120 institutional accounts across the globe. With the completion of the ADR issue & two domestic offerings, FIIs constitute 44.6% of total holding in ICICI & after the conversion of ICICI's FCCBs the FII holding will go up to slightly over 46%, provided FCCB conversion option is fully exercised. To its existing GDR holders ICICI will soon make an offer to convert their stock into ADRs. Satyam Infoway Ltd,the second largest Internet Service Provider in India on tuesday filed papers with US Securities & Exchange Commission for a Proposed $50m offering of American Depository Shares. The offering will be lead managed by investment banker Merill Lynch & Co. The issue is expected to raise the foreign equity level from 39.29% to 43.98%. The proceeds from the issue will be utilised to fund the company's proposed Internet gateway and to develop content for its portal business, advertise & promote the Satyam brand & to repay certain debts. One ADS will be equal to one share. The company is expected to be listed on Nasdaq. Mahindra & Mahindra on monday converted their foreign currency convertible bonds (FCCB's) worth $52.017m into GDRs under a special conversion offer at a price of $10 per GDR. The original conversion price was $11.935. Following the conversion the share capital of the company increases to 108.6crore from Rs 103.4crore. Still, FCCB's worth $28.150m remain outstanding from bonds aggregating $115m issued in July 1996.

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.