Bangalore: Infosys Technologies today (Nov 8, 2004) aid it will convert 16 million shares traded in India into American Depository Shares (ADS) which would increase its stock on the US stock exchange NASDAQ by six per cent.

21.2 million shares (ADS) of Infosys are currently listed on the NASDAQ, constituting 7.9 per cent of the total stock of the 267.8 million shares in the secondary market.

Infosys officials said that the secondary offering of 16 million shares will increase the firm's stock traded on the NASDAQ by six per cent to 13.9 per cent from the existing 7.9 per cent.

After the board approved the sponsored secondary ADS earlier in the day, Infosys informed the Bombay Stock Exchange that an extraordinary general meeting has been convened on December 18, to seek approval of its shareholders.

There will be no fresh issue of shares nor will Infosys use any proceeds from the secondary ADS, to be completed by March next, its second in the last two years.

After the EGM, Infosys will hold road shows in January and February and decide the pricing in mid-March for the offering to overseas investors in consultations with lead managers, officials said.

The Infosys ADR, being traded at a premium of over 50 per cent since April closed at $ 65.55 on Friday.

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, increasing its liquidity by 4.9 per cent to 7.9 per cent.