Software giant Infosys looks to delist ADS from European based Stock exchanges that include Euronext Paris and London.
Infosys stated that reason for delisting is the low daily average trading on both the exchanges. The delisting will take place after an approval from Euronext Paris S.A. and Euronext London Ltd.
The listing will continue on New York Stock Exchange (NYSE).
American Depository Shares (ADS) were listed on European stock exchanges by Infosys five years ago. Since it began trading in February 2013, its average trading volume has been lower than on NYSE.
A statement said,” As the ADS will continue to be on the NYSE under its symbol “Infy”, investors can trade their ADS on the US exchange.”
“ADS holders, who opt for the facility, can sell their shares on the NYSE in accordance with Paris and London stock exchange rules,” it added.
Industry watchers say that the development will not have any material impact on the company’s European based performances. It saw a 5.7 percent rise in the last quarter as compared to the year-ago period.
There will be of no fundamental impact and the development is not of much consequence, said Urmil Shah, IT analyst, IDBI Capital.
The company’s share trades on India’s both BSE-Sensex and NSE-Nifty.
In a regulatory filing on the BSE, the company 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 twin Euro exchanges.
The company’s share gained 2 percent rise on Monday to end at Rs 1185.85 per share on BSE.