Low average daily trading volume has forced Indian software major Infosys to voluntarily delist its American Depositary Shares (ADS) from the Euronext Paris and Euronext London exchanges.
Infosys in a statement on Monday said the low volume of trading of ADS in these Exchanges was not commensurate with the related administrative requirements.
During the 5-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 New York Stock Exchange (NYSE).
It said the proposed delisting is subject to approval from Euronext Paris S.A. and Euronext London Limited. 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. Infosys ADS will continue to be listed on the NYSE under the symbol “INFY” and investors could continue to trade their ADS on the NYSE.
The Company said a sales facility will be provided by the company to the holders of ADS trading on the Euronext Paris and Euronext London exchanges. 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.
Further, until the date of completion of the proposed delisting, the ADS holders can continue to trade their ADS on the Euronext Paris and Euronext London exchanges.