| Author |
Message |
Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
Online Status: Offline
Posts: 6675
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   Topic: Why so much difference?
Posted: 08/Nov/2006 at 7:38am |
| Security Name |
GDR Price
(USD) |
GDR Price
Date |
Equiv Value
(Rs.) |
Issue Date |
Issue Size
(USD millions) |
Issue Price
(USD) |
Prem Discount
To IssuePrice (%) |
| BAJAJAUT(GDR |
60.50 |
07/11/2006 |
2703.14 |
31/10/1994 |
110.00 |
16.88 |
258.41 |
| GACL(GDR |
2.97 |
07/11/2006 |
132.70 |
30/11/1993 |
80.00 |
5.95 |
-50.08 |
| GRASIM(GDR |
61.75 |
07/11/2006 |
2758.99 |
30/06/1994 |
100.00 |
20.50 |
201.21 |
| HINDALCO(GDR |
4.20 |
07/11/2006 |
187.66 |
31/07/1994 |
100.00 |
16.00 |
-73.75 |
| ITC(GDR |
4.18 |
07/11/2006 |
186.76 |
31/12/1993 |
68.85 |
7.65 |
-45.35 |
| LANDT(GDR |
29.80 |
07/11/2006 |
665.73 |
31/03/1996 |
150.00 |
15.35 |
94.13 |
| MANDM(GDR |
17.53 |
07/11/2006 |
783.24 |
30/11/1993 |
74.75 |
4.46 |
293.04 |
| RANBAXY(GDR |
8.90 |
07/11/2006 |
397.65 |
30/06/1994 |
100.00 |
19.38 |
-54.07 |
| RIL(GDR |
58.05 |
07/11/2006 |
1296.84 |
28/02/1994 |
300.00 |
11.75 |
394.04 |
| SBI(GDR |
64.50 |
07/11/2006 |
1440.93 |
31/10/1996 |
369.95 |
14.15 |
355.83 |
| Security Name |
ADR Price (US $) |
ADR Price Date |
Equiv Value (Rs.) |
| DR.REDDY(ADR |
17.57 |
07/11/2006 |
785.03 |
| HDFCBANK(ADR |
70.75 |
07/11/2006 |
3161.11 |
| ICICIBK.(ADR |
35.45 |
07/11/2006 |
1583.91 |
| INFY(ADR |
52.26 |
07/11/2006 |
2334.98 |
| MTNL(ADR |
6.18 |
07/11/2006 |
276.12 |
| PATNI (ADR |
19.96 |
07/11/2006 |
891.81 |
| REDIFF(ADR |
16.00 |
07/11/2006 |
714.88 |
| SATYAM(ADR |
21.20 |
07/11/2006 |
947.22 |
| SIFY(ADR |
9.09 |
07/11/2006 |
406.14 |
| TATA MOT(ADR |
18.25 |
07/11/2006 |
815.41 |
| VSNLLTD.(ADR |
19.91 |
07/11/2006 |
889.58 |
| WIPROLTD(ADR |
14.23 |
07/11/2006 |
635.80 |
| WNS HOLD(ADR |
29.20 |
07/11/2006 |
1304.66 |
Can someone please tell how is there so much discrepancy between the ADR prices and CMP on Indian Stock Market? Was perplexed to see some notable names. Kindly help.
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BubbleVision
Senior Member
Joined: 05/Aug/2006
Location: India
Online Status: Offline
Posts: 3142
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Posted: 09/Nov/2006 at 2:12pm |
Vivek have you checked these premium on ADR'S and GDR's with the conversion ratio. In some cases 1 ADR (or GDR) is NOT equal to one local share. (Manishdave can help here)....
Even then there is a premium because of the scarcity factor overseas. This premium may have increased in the recent times because of the Bull Run in the markets currently.
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You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer!
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manishdave
Senior Member
Joined: 05/Aug/2006
Location: India
Online Status: Offline
Posts: 1371
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Posted: 09/Nov/2006 at 9:54pm |
You are right. For example, ONE ICICIBANK ADR has TWO stocks. But prices are not always equal and sometimes there is premium/discount as much as 35-40%. Reason is general public do not have access to Indian stock so if India is hot, they buy here without checking(or worrying) price in Indian mkt. Another reason is FII limit. If they can not buy stocks there, they would buy ADR/GDR even at premium.
There is one difference btn ADR and GDR. Apart from exchange, GDR is only for institutional investors(isn't it funny?). Even if you live in London, and you have 1000,000 GBP you can not buy GRD. ADR is for anybody.
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Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
Online Status: Offline
Posts: 6675
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Posted: 10/Nov/2006 at 10:39pm |
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Manish, can you please refewr a site where I can get the information about how many shares are there for a particular co.'s GDR/ADR. Aslo, if they trade at such a premuim does it not represent the appetite for that co.'s stock
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manishdave
Senior Member
Joined: 05/Aug/2006
Location: India
Online Status: Offline
Posts: 1371
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Posted: 10/Nov/2006 at 5:43am |
bnyadr.com is good site.
Aslo, if they trade at such a premuim does it not represent the appetite for that co.'s stock
It does, but I won't pay much attention. See this 2 year chart that compare appreciation betn ADR/Indian stock
http://finance.yahoo.com/charts#chart5:symbol=icicibank.ns;range=2y;compare=ibn;indicator=volume;charttype=line;crosshair=on;logscale=on;source=
Edited by manishdave - 10/Nov/2006 at 5:44am
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BubbleVision
Senior Member
Joined: 05/Aug/2006
Location: India
Online Status: Offline
Posts: 3142
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Posted: 10/Nov/2006 at 9:42am |
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Manish can u help me where can we see the BNY ADR index. I believe that there are many sub-country index of the BNY ADR index. Also the ADR'S are classified by Sector. A Link to any of these would help. TIA
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You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer!
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manishdave
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Joined: 05/Aug/2006
Location: India
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Posts: 1371
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Posted: 12/Nov/2006 at 12:42pm |
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BubbleVision
Senior Member
Joined: 05/Aug/2006
Location: India
Online Status: Offline
Posts: 3142
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Posted: 13/Nov/2006 at 6:29pm |
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Thanks Manish.... that is a really helpful and an interesting website.
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You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer!
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