The roadshows for the $75 million Infosys American depository receipt (ADR) issue are likely to be delayed by two to three weeks.
The delay is due to the lead manager to the issue, San Francisco-based NationsBanc Montgomery Securities, considering increasing the size of the selling syndicate for the offering, volatile US stock markets and the Securities and Exchange Commission, the US regulator, seeking more details from Infosys.
The delay in the roadshows will result in the launch of the issue in the US being deferred till next month, sources said.
The sources said NationsBanc was planning to include more members in the selling syndicate in an attempt to rope in more subscribers, including retail investors.
"There are players who want to be part of the syndicate and this will be decided upon shortly," a source said.
Robertson Stevens and BT Alex Brown are the joint lead managers to the issue.
NationsBanc is adopting a prudent approach on the issue timing in view of the recent volatility in the US markets. "The volatility factor will be considered and we will look at a launch only when the markets are right for it," a source close to NationsBanc said.
Investment bankers are cautious over the prospects of the Infosys ADR inspite of the recent success of large global telecom offerings.
They point out that most telecom issues that succeeded were initial public offerings and very few secondary market deals have been struck recently.
"Considering the volatility, it would be better to maintain caution before moving in for roadshows for an Indian offering," an investment banker said.
