In a notice to the exchanges, Infosys stated, “The primary reason for seeking the proposed delisting is the low average daily trading volume of Infosys ADS on these exchanges, which is not commensurate with the related administrative requirements.”
According to Infosys, during the five-year period of the company’s listing on Euronext Paris and Euronext London, the average daily trading volume of the company’s ADS was significantly lower than its average daily trading volume on the NYSE. The Infosys ADS closed at €14.40 on the Euronext Paris on March 9.
Infosys made its foray into the Euronext in December 2012 following its move to delist from Nasdaq and list primarily on the NYSE. The move was primarily to give better access to investors based in Europe. The proposed delisting is subject to approval from Euronext Paris and Euronext London.
Infosys said there will be no change to the Infosys share/ADS count, capital structure and float, as a result of the proposed delisting from the exchanges.
“Infosys ADS will continue to be listed on the NYSE under the symbol ‘INFY’ and investors can continue to trade their ADS on the NYSE as before,” it said. Infosys ADS on NYSE closed at $18.16 on March 9.
Infosys said, “ADS holders, who opt for the sales facility will be able to sell their ADS on the NYSE in accordance with Euronext Paris and Euronext London rules. ADS holders who do not opt for the sales facility can continue to keep their ADS and will be able to trade their ADS on the NYSE.” FE