Patni board meet on July 11 over ADS issue

Software services exporter Patni Computer Systems' board will meet on Wednesday to consider an earlier proposal to float a $150 million American depository receipts (ADRs) issue.

The company was planning an issue for raising additional capital and the offering was to be registered with the US Securities and Exchange Commission.

Patni was planning a fresh issue of shares up to $150 million, including a greenshoe option and had received board approval on February 19, 2005. The issue was subject to shareholders' and regulatory approvals, the company had said in a release earlier.

The pricing, number of shares to be issued and other formalities of the issue were yet to be determined. The company was also in talks with investment bankers Goldman Sachs, Merrill Lynch and ABN AMRO Rothschild for the issue.

The proceeds of the offering will be used for construction and development of new infrastructure facilities in India and for other general corporate purposes. Company officials were not available for comments.