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‘Infosys deal got good response from foreign investors’

Deutsche Bank is also a part of Coal India divestment process and expects a good response for that took.

Sanjay Sharma, MD & Head ECM at Deutsche Equities India in an interview to CNBC-TV18 spoke about the sale of  Infosys shares by some of the co-founders and their family members.

He said the book was reasonably subscribed and since it was done over the weekend there was a lot of participation from foreign investors, almost to the tune of 80 percent. However, the Asian and domestic investors too participated but got less time to do so. The response was seen from both existing and new investors, he added.

Deutsche Bank was the sole book runner of the sale and the books were covered just after the launch . A reuters report this morning said “four founders” of Infosys had sold the shares, worth USD 1.1 billion at Rs 1,988 per share (a 4 percent discount to Friday’s closing price).

The report suggested the founders were selling the stake for “personal and philanthropic purposes”. Four of the original founders, co-founders and their families are offering 32.6 million shares in Infosys at a fixed price of 1,988 rupees (USD 32) each, a 4 percent discount to Friday’s close.

The bank is also a part of Coal Indi a divestment process and expects a good response for that took.

He is very encouraged by the retail flows into mutual funds and does not see any investment fatigue for the divestments in the near-term at least.

transcript to follow

Infosys stock price

On December 08, 2014, Infosys closed at Rs 1968.60, down Rs 101.1, or 4.88 percent. The 52-week high of the share was Rs 4401.00 and the 52-week low was Rs 1958.50.


The company’s trailing 12-month (TTM) EPS was at Rs 101.90 per share as per the quarter ended June 2014. The stock’s price-to-earnings (P/E) ratio was 19.32. The latest book value of the company is Rs 366.51 per share. At current value, the price-to-book value of the company is 5.37.

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