After the average daily trading volume in Infosys American Depository Shares or ADS was hit with a low on Euronext's Paris and London Exchanges, the IT major Infosys in March this year announced plans to delist them voluntarily from the two exchanges. In line with it, Infosys on Monday said that its proposal to delist Infosys' ADS from the Euronext Paris and Euronext London exchanges has been approved by the board of directors of these bourses.
In a BSE filing Infosys said, "...the voluntary delisting of its ADS' from the Euronext Paris and Euronext London exchanges has been approved by the Board of Directors of Euronext Paris SA and by Euronext London Ltd".
The decision to this effect was taken as the low trading volume in these Infosys' ADS was not in sync with the associated administrative needs.
It is to be noted that during the 5-year listing period of Infosys ADS' on Euronext's Paris and London exchanges, average daily trading volume was substantially lower in comparison to its trading on New York Stock Exchange or NYSE. As a result, the ADS of Infosys shall continue to be listed on the NYSE.
Nonetheless due to the delisting move from the two exchanges, there will be no change in the Infosys scrip, ADS count, float or capital structure.
On the above bourse, the company began trading in February 2013.
The filing further added that, "The delisting procedure will allow Infosys ADS' listed on the Euronext Paris and Euronext London exchanges to be sold on the NYSE. A sales facility will be provided to the holders of Infosys ADS' trading on the Euronext Paris and Euronext London exchanges".
The sales facility in ADS' will continue from June 18 to June 29. And after its last trading session on the two bourses on July 4, the shares will get delisted on the following day i.e July 5, 2018 from both Euronext's Paris and London exchanges.
Infosys also added that holders of such shares can choose to participate in the sales facility to sell their ADSs on the NYSE in accordance with Euronext Paris and Euronext London rules, Infosys said.