Mumbai, Nov. 7: Infosys shareholders today approved the company’s third sponsored American Depository Shares (ADS) issue.

The sponsored ADS issue, valued at $1.5 billion, will enable Infosys to be part of the Nasdaq-100 index. The approval came at an extraordinary general meeting (EGM) in Bangalore.

Infosys had announced last month that the sponsored ADS issue will consist of a maximum of 30 million equity shares and would be placed with Japanese investors through a public offer without listing (POWL) as part of the offering.

While all equity shareholders will be eligible to offer their equity shares in the offering, Infosys will not be issuing any new shares and the underwriters will determine the price of the ADS being sold. The proceeds of the offering, after meeting its expenses, will be proportionately paid to the selling shareholders participating in the offering.

Based on the closing price of $51.66 of the Infosys ADR on the Nasdaq on Monday, the size of the float is expected to be little over $1.5 billion, making it the largest ever sponsored ADS from India.

At the EGM, shareholders voiced their concern that the issue will result in overseas shareholders having a larger stake in the company.

N.R. Narayana Murthy, non-executive chairman and chief mentor of Infosys, said, “I hope, at some point of time, we will become the first Indian company to be part of Nasdaq-100. That particular journey requires that we enhance liquidity in the US and this exercise is part of reaching that goal.”