ADR issue depends on market, says Pentamedia
Indian multimedia and entertainment firm Pentamedia Graphics Limited will await better market conditions to launch its overseas issue, its chairman said on Thursday.
"We don't want to do it now," V Chandrasekaran told reporters. "We would like to do it within this year or maybe in early 2001 if the price is right." The company took approvals from shareholders in May to raise up to $200 million through issue of American depositary receipts or global depositary receipts.
He did not specify whether it would do an ADR or a GDR. It had issued GDRs earlier.
Pentamedia shares were quoted down Rs 10.55 at Rs 415.10 on the Bombay Stock Exchange on Thursday afternoon in a volume of over 1.3 million shares, while the Sensex was down 1.21 per cent at 4,209.25 points.
The firm's shares are ruling closer to their calendar 2000 low of Rs 356.10 hit on May 29 and are down 82 per cent from their peaks of Rs 2,344 on February 23.
The shares have fallen even from the May 12 level of Rs 491.85 when the firm received shareholders' approval for the issue.
Chandrasekaran said group software firm Pentasoft Technologies Limited was likely to launch an overseas offering before Pentamedia but not at the current price.
The company has approvals to raise up to $150 million through ADR/GDR offerings, a company official said.
Pentasoft shares were quoted up 1.5 per cent at Rs 278, but down from a peak of 1,200 touched on February 25.
Chandrasekaran said both companies were in talks for overseas acquisitions.
Group officials told a news conference Pentasoft will spend over A$1 million as a sponsor for the one-day international cricket series between Australia and South Africa to be played in Australia this month.
They said the mileage derived from the event would help the firm boost revenues in Australia.
Pentasoft's revenues from Australia are expected to be about A$20 million in the year to March 31, 2001.