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|May 30, 1997||
Infosys volumes rise eleven times on BSEOn June 7, Infosys Technologies shareholders will meet to decide on raising the stake of foreign institutional investors from 6 to 30 per cent. But the Bombay Stock Exchange is already in a flurry.
The company's volumes have jumped to 11,000 shares from the usual 1,000. Prices also seems to be receiving technical support of around Rs 1,450. Institutional investors are said to be flocking to the scrip.
Infosys has decided to raise around $50 million through an American depository receipts issue sometime in the first quarter next year. The ADR issue will get the company listed on the NASDAQ. Since the United States is the single largest market for software (58 per cent global share), listing on the NASDAQ will provide Infosys credibility in international markets.
Prices for its scrips closed at Rs 1,454 on Thursday, up from a low of Rs 1,385 on May 23. The price declined by about 1.2 per cent on May 28 to Rs 1,435 from Rs 1,452 on May 23.
Contrary to the spurt in the volumes the price witnessed a decline from the day's high of Rs 1,452 to touch a low of Rs 1,385.5. This fall of 4.83 per cent is being attributed to local traders booking profits at higher levels.
Analysts at HSBC Batlivala and Karani, after a recent company visit, are highly optimistic. Especially because of the development of a new product coined PorteNT, a methodology and toolkit used to port applications from the traditional OS/2 (UNIX platform) to the latest Windows NT platform.
Analysts of HSBC estimate the revenue to grow by 50 per cent per annum and net profits by 45 per cent per annum for the next 2-3 years. Infosys' bank automation software has registered a strong growth of around 80 per cent over the past two years.
- Compiled from the Indian media
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