Bangalore: IT bellwether Infosys Technologies will decide tomorrow (Nov 8, 2004) to issue another sponsored secondary American Depository Shares (ADS) that would increase the float of its stock in the US stock market NASDAQ.

Infosys board will meet in Bangalore tomorrow to consider the proposal to sponsor the issue of ADS against its existing equity shares, its second in the last two years, which analysts expect the size to be in the range of $ 500 million.

The Bangalore-based software exporter offered six million ADS in August 2003, equivalent to three million equity shares at a price of $ 49 per ADS. The total size of the offering was $ 294 million.

In April this year, the NASDAQ-listed Infosys made one equity share equivalent to one ADS following a bonus issue of 1:3.

The Infosys ADR, which normally trades at a premium of over 40 per cent to the Indian stock, has gained over 35 per cent since early August.

A sponsored ADS issue is meant to infuse liquidity in overseas stock markets by converting local shares into ADS.