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Coforge Shares Pare Early Gains; Stock To List On US Exchange Via ADR


In an otherwise weak market, mid-cap IT stock Coforge Limited formerly called NIIT Technologies in trade on November 16, 2021 scaled 6.8 percent to day's high price of Rs. 5874 apiece on the NSE. The gains in the stock price are mainly on account of the fact that the company has filed papers for the initial share sale with the US Securities Exchange Commission (SEC).

Coforge Shares Pare Early Gains; Stock To List On US Exchange Via ADR

In its filing today, the company said that the board has given its go-ahead for the IPO in the US markets and it shall be via the American Depository Receipts (ADR) route. In the proposed share sale plan, Barings Private Equity Asia will offload part stake. Barings PE as per the stock exchange holds 50 percent stake in Coforge.

The company at the time of releasing its quarterly results said in a filing that it had submitted Form F-1 registration statement with the US regulator after the company's board has approved NYSE as its chosen stock exchange for the ADR offer. Also, the company specified that the company's shareholders intending to participate in the ADR offer can evince their interest between November 18 and December 2, 2021.

In a general sense ADRs are stocks that trade on US exchanges, nonetheless are representative of shares in a foreign firm. These provide Americans an opportunity to invest in international companies. The other companies listed in the US via ADR include ICICI Bank and Infosys.

JP Morgan, Citi, Barclays, Bank of America Securities, Credit Suisse, Evercore and Deutsche Bank are the lead investment bankers working Coforge share sale plan, according to SEC documents.

At 12:52 pm, Coforge shares were up just 2.8 percent at Rs. 5646 per share on the NSE

Read more about: coforge adr
Story first published: Tuesday, November 16, 2021, 12:59 [IST]
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