Definition of GDRs
GDRs mean global depository receipts. It is negotiable and transferable from one body to another. It is also evidence of ownership of a company's shares . When a bank purchases shares of foreign company, at that time it issues a certificate, that certificate is called global depository receipt.
Suppose A USA based company wants to buy the shares of Indian company, then it only possible by getting GDRs. USA Company can buy Indian company shares by the help of his bank. Bank takes some charges and issues GDR.
Suppose A USA based company wants to buy the shares of Indian company, then it only possible by getting GDRs. USA Company can buy Indian company shares by the help of his bank. Bank takes some charges and issues GDR.
Importance of GDRs
If any company gets GDRs for his purchased shares, then these can be sold in any stock market of world through global network of banks and financial institutions.
Global Depositary Receipts (GDRs) give power to investors and companies access to two or more markets, most frequently the US market and the Euromarkets, with one security. GDRs are most commonly used when the company is raising capital in the local market as well as in the international and US markets, either through private placement or public offerings.
Securities and Exchange Commission of USA has allowed USA companies and also foreign companies to buy and sell shares through GDRs
Among the Indian Companies, Reliance Industries Ltd. was the first company to get funds through a GDR issue , after this many other Indian Companies like Infosys,WIPRO AND ICICI have started to raise funds via GDRs.
It is the good way for getting foreign investment for developing economy .
Indian GDR
| THE COMPREHENSIVE GDR LISTING | |||||
| GDR Companies # euro convertible bond **adjusted for bonus | Industry Segregation | Date Of GDR Issue | Size Of GDR Issue US $ Mill | Shares per GDR | GDR Issue Price **(US$) |
| Arvind Mills | Textiles | 03-Feb-94 | 125.00 | 1.0 | 9.78 |
| Ashok Leyland | Autos | 20-Mar-95 | 137.77 | 3.0 | 12.79 |
| Bajaj Auto | Autos | 27-Oct-94 | 110.00 | 1.0 | 16.89 |
| Ballarpur Ind.# | Paper | 27-May-94 | 35.00 | 1.0 | 8.77 |
| Bombay Dye | Textiles | 16-Nov-93 | 50.00 | 1.0 | 9.20 |
| BSES Ltd | Power | 04-Mar-96 | 125.00 | 3.0 | 14.40 |
| Century Textiles | Diversified | 21-Sep-94 | 100.00 | 2.0 | 254.00 |
| CESC | Power | 14-Apr-94 | 125.00 | 1.0 | 10.67 |
| Core Parent | Pharma | 21-Jun-94 | 70.00 | 1.0 | 12.60 |
| Crompton Greaves | Electrical | 02-Jul-96 | 50.00 | 1.0 | 7.56 |
| DCW | Diversified | 19-May-94 | 25.00 | 5.0 | 13.55 |
| Dr. Reddy's | Pharma | 18-Jul-94 | 48.00 | 1.0 | 11.16m |
| E. I. Hotels | Hotels | 07-Oct-94 | 40.00 | 1.0 | 9.30 |
| EID Parry | Fertiliser | 07-Jul-94 | 40.00 | 1.0 | 8.39 |
| Finolex Cab | Cables | 19-Jul-94 | 55.00 | 1.0 | 16.60 |
| Flex Industries | Packaging | 30-Nov-95 | 30.00 | 2.0 | 8.05 |
| G.E. Shipping | Shipping | 17-Feb-94 | 100.00 | 5.0 | 15.94 |
| G.N.F.C | Fertiliser | 06-Oct-94 | 61.11 | 5.0 | 12.75 |
| GAIL | Oil & Refineries | 04-Nov-99 | 22.50 | 6.0 | 9.67 |
| Garden Silk | Textiles | 04-Mar-94 | 45.00 | 5.0 | 26.28 |
| Grasim (1st) | Diversified | 25-Nov-92 | 90.00 | 1.0 | 12.98 |
| Grasim (2nd) | Diversified | 09-Jun-94 | 100.00 | 1.0 | 20.50 |
| Guj Ambuja # | Cement | 26-Nov-93 | 80.00 | 1.0 | 5.95 |
| Himachal Futuri | Telecomm. | 02-Aug-95 | 50.00 | 4.0 | 9.30 |
| Hindalco (1st) | Aluminium | 22-Jul-93 | 72.00 | 1.0 | 10.73 |
| Hindalco (2nd) | Aluminium | 08-Jul-94 | 100.00 | 1.0 | 16.00 |
| Hindustan Dev. | Diversified | 21-Sep-94 | 76.00 | 1.0 | 2.05 |
| India Cements | Cement | 11-Oct-94 | 90.00 | 1.0 | 4.23 |
| Indian Alum. | Aluminium | 22-Feb-94 | 60.00 | 1.0 | 6.77 |
| Indian Hotels | Hotels | 28-Apr-95 | 86.25 | 1.0 | 16.60 |
| Indian Rayon | Diversified | 25-Jan-94 | 125.00 | 1.0 | 15.01 |
| Indo Gulf | Fertiliser | 18-Jan-94 | 100.00 | 1.0 | 4.51 |
| Indo Rama | Textiles | 21-Mar-96 | 50.00 | 10.0 | 11.37 |
| ICICI | Finance | 02-Aug-96 | 230.00 | 5.0 | 11.50 |
| ICICI (ADR) | Finance | 22-Sep-99 | 315 | 5.0 | 9.80 |
| Infosys | IT | 11-Mar-99 | 70.38 | 0.5 | 34 |
| IPCL | Petrochemicals | 08-Dec-94 | 85.00 | 3.0 | 13.87 |
| ITC | Cigarettes | 13-Oct-93 | 68.85 | 1.0 | 7.65 |
| J.K. Corp | Diversified | 17-Oct-94 | 55.00 | 1.0 | 8.00 |
| Jain Irrig | Plastics | 25-Feb-94 | 30.00 | 1.0 | 11.13 |
| JCT Ltd. | Textiles | 29-Jul-94 | 45.00 | 10.0 | 16.96 |
| Kesoram Ind | Diversified | 31-Jul-96V | 30.00 | 1.0 | 1.60 |
| L & T (1st) | Diversified | 18-Nov-94 | 150.00 | 2.0 | 16.70 |
| L & T (2nd) | Diversified | 01-Mar-96 | 135.00 | 2.0 | 15.35 |
| Mah & Mah | Autos | 30-Nov-93 | 74.75 | 1.0 | 4.46 |
| MTNL | Telecom | 04-Dec-97 | 418.53 | 2.0 | 11.958 |
| NEPC Micon | Diversified | 07-Nov-94 | 47.70 | 1.0 | 3.18 |
| Nippon Denro# | Steel | 03-Mar-94 | 125.00 | 10.0 | 21.36 |
| Oriental Hotels | Hotels | 14-Dec-94 | 30.00 | 1.5 | 12.75 |
| Ranbaxy Labs | Pharma | 29-Jun-94 | 100.00 | 1.0 | 19.38 |
| Raymond Woolen | Textile | 09-Nov-94 | 60.00 | 2.0 | 10.61 |
| Reliance | Diversified | 27-May-92 | 150.00 | 2.0 | 16.35 |
| Reliance (2nd) | Diversified | 15-Feb-94 | 300.00 | 2.0 | 23.50 |
| Reliance Petroleum | Diversified | 18-Oct-99 | 100 | 15.0 | 23.0 |
| S.A.I.L. | Steel | 07-Mar-96 | 125.00 | 15.0 | 12.97 |
| Satyam Infoway | IT | 19-Oct-99 | 75.00 | 1.0 | 18.0 |
| S.I.E.L. | Diversified | 14-Oct-94 | 40.00 | 3.0 | 14.64 |
| Sanghi Poly | Textiles | 28-Jul-94 | 50.00 | 5.0 | 9.56 |
| SIV Ind | Textiles | 01-Aug-94 | 45.00 | 1.0 | 6.37 |
| SPIC | Fertiliser | 28-Sep-93 | 65.00 | 5.0 | 11.15 |
| SBI | Banking | 03-Oct-96 | 369.95 | 2.0 | 14.15 |
| Sterlite India# | Diversified | 22-Dec-93 | 100.00 | 1.0 | 17.86 |
| Tata Electric | Power | 22-Feb-94 | 65.00 | 100.0 | 710.00 |
| Telco (1st) | Autos | 15-Jul-94 | 115.00 | 1.0 | 8.75 |
| Telco (2nd) | Autos | 06-Aug-96 | 200.00 | 1.0 | 14.25 |
| Tube Invest | Cycles & Acc. | 20-May-94 | 45.60 | 1.0 | 6.58 |
| United Phos. | Pesticides | 25-Feb-94 | 55.00 | 1.0 | 20.50 |
| Usha Beltron | Cables | 06-Oct-94 | 35.00 | 1.0 | 10.70 |
| Videocon Int. | Electronics | 26-Jan-94 | 90.00 | 1.0 | 8.10 |
| VSNL | Telecomm. | 24-Mar-97 | 527.00 | 0.5 | 13.93 |
| Wockhardt | Pharma | 25-Feb-94 | 75.00 | 1.0 | 14.35 |
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