Patni logs volatility after ADR approval

DALAL STREET SPIKES

Patni Computer stock witnessed a volatile trading on Monday following the approval of the company's board for an ADR issue. The stock of the mid-size technology company hit an intra-day high of Rs 408, before closing at Rs 383.90, down 2.87 per cent.

The stock slipped in line with an overall subdued sentiment in the market, with the Sensex losing nearly 50 points at close. More than 1.11 shares of the company changed hands on the BSE today.

Patni Computer Systems Ltd informed today that its board of directors has approved, subject to the requisite shareholders' and regulatory approvals, the raising of additional capital by the way of an issue of American Depository Receipts (ADRs) upto an aggregate of US$150 million including a green shoe option.

Analysts said, technology stocks have been witnessing a profit-booking at higher levels after a smart run up in the past few weeks.

However, analysts are bullish on the sector and said selected frontline, as well as second rung tech stocks, should witness buying interest in anticipation of improved financials and the sector is rather immune to external factors like elections and the budget.