Infosys to delist ADS from Euronext exchanges

Indian outsourcing company Infosys said it will delist its American Depositary Shares from Euronext Paris and Euronext London stock exchanges due to low transaction volumes.

American Depositary Shares (ADSs) are securities issued by banks in place of actual shares, which are kept by the banks on behalf of the security holder. Their value depends on the value of the actual, underlying shares.

It said the volumes do not justify the cost of keeping the securities listed on the exchanges.

“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,” the Bangalore-based company.

It said the average daily trading volume of the company’s ADS on the European exchanges was “significantly lower “than its average daily trading volume on the New York Stock Exchange (NYSE).

Those who hold ADSes traded on the two exchanges will be able to sell their holdings on a special “sales facility” arranged by the company.

Investors can also hold on to their ADSes and sell these later on the NYSE, it added.

“There will be no change to the Infosys share/ADS count, capital structure and float, as a result of the proposed delisting from the above exchanges,” the company said.