Adr/Gdr Price Surge Lifts Skindia Premium

Sharp increase in prices of depository receipts (ADR/GDR) has pushed up the premium on Skindia GDR Index. The premium, which was 6.65 per cent on October 4, rose to 9.33 per cent on October 11.This was mainly due to strong international markets.

According to Instanex Capital Consultants, a Mumbai-based monitoring agency, the highest premium was registered in GDR of Indian Hotels, which reached a a two-year high of 59.40 per cent higher than its domestic share price. On 11 October, the company's GDR price, adjusted to the underlying shares, closed at Rs 192.16 compared with the domestic price of Rs 120.55.

Infosys Technologies continued to command higher premium during the week and was quoted 56.78 per cent higher than its domestic share price. While the price of ADR, adjusted to the underlying shares, was Rs 4,333.21 compared with the domestic share price of Rs 2763.85.

Of the 23 constituents of the index, there were 17 gainers and 5 losers. The top gainers were Indo-Gulf (ADR, up 27.27 per cent to $0.70), Infosys Technologies (ADR up 23.56 per cent to $45.10) and ICICI Bank (ADR up 23.33 per cent to $3.70).

The top losers were Spic (GDR down 26.83 per cent to $0.75), Arvind Mills (GDR down 12.50 per cent to $0.18) and Crompton Greaves (GDR down 11.11 per cent to $0.44).

Highest discounts were registered in Aptech Ltd (30.19 per cent), Sanghi Polyesters (12.645 per cent) and Silverline Technologies (10.09 per cent.

The ADR of Silverline Technologies, adjusted to underlying shares, traded at Rs 24.50 compared with the domestic share price of Rs 27.25.

This means that these three shares were costlier in India than abroad.