Depositary Receipt Capital Raisings from India Surge 512% in First Quarter

NEW YORK, May 6 /PRNewswire-FirstCall/ -- BNY Mellon, the global leader in asset management and securities servicing, announced that the value of depositary receipt initial capital raisings by Indian companies surged 512% in the first quarter compared to 2009, exceeding $200 million.  Eight Indian companies raised capital and listed on the Luxembourg Stock Exchange during the first quarter of 2010, versus one listing in the same period last year.  

India has the largest number of companies with sponsored depositary receipt (DR) programs.  The new listings bring the total to 288 programs across more than 30 industries.  Despite the global slow-down related to the credit crisis, 10 Indian firms made initial DR offerings in all of 2009, and with eight listings in the first quarter of 2010 the country is currently on a faster pace for this year.

Companies that have raised capital through DRs this year include B.A.G. Films & Media, Birla Cotsyn, Birla Power Solutions, Glory Polyfilms, Nectar Lifesciences, Rainbow Papers, S.E. Investments, and Teledata Technology Solutions.  Industries represented include Financial Services, Media, Forestry & Paper, General Industries, Industrial Metals and Mining, Software, and Pharma & Biotech.  All listed on the Luxembourg Stock Exchange, where the majority of DRs from Indian issuers trade.  

BNY Mellon acted as depositary for seven of the eight Indian issuers, which accounted for 83% of the capital raised in DR form from the sub-continent during the period.  BNY Mellon is the leading depositary in India, acting as depositary for 43% of the Indian DR market.

"Global investor demand for Indian companies remains high, as evidenced by the uptake of this latest group of wide-ranging DR programs," said Michael Cole-Fontayn, chief executive officer of BNY Mellon's Depositary Receipts business.  "We will continue to support the market for those firms keen to raise their international exposure and attract capital from investors worldwide."

BNY Mellon acts as depositary for more than 2,100 American and global depositary receipt programs, acting in partnership with leading companies from 67 countries. With an unrivaled commitment to helping securities issuers succeed in the world's rapidly evolving financial markets, the company delivers the industry's most comprehensive suite of integrated depositary receipt, corporate trust and stock transfer services. Learn more at www.bnymellon.com/dr.

BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $22.4 trillion in assets under custody and administration, $1.1 trillion in assets under management, services $11.8 trillion in outstanding debt and processes global payments averaging $1.5 trillion per day. Learn more at www.bnymellon.com.

This release is for informational purposes only. BNY Mellon provides no advice nor recommendation or endorsement with respect to any company or securities. Nothing herein shall be deemed to constitute an offer to sell or a solicitation of an offer to buy securities. Depositary Receipts: Not FDIC, State or Federal Agency Insured; May Lose Value; No Bank, State or Federal Agency Guarantee.

SOURCE BNY Mellon

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