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Top Ten Sensex Companies With Depositary Receipts

A Depositary Receipt (DR) is a negotiable and transferable financial security issued by a foreign-based company in local currency. In the Indian context, DR is the share certificate issued by an Indian company in a foreign country. DRs issued in the U.S. are called as American Depositary Receipts (ADRs) while those issued in the other countries are called as Global Depositary Receipts (GDRs) or Global Depositary Shares (GDS). The DRs are traded publically or over the counter. The prices of these securities fluctuate based on the financial performance of the entity. ADRs are commonly traded on U.S. stock exchanges like NYSE or NASDAQ while GDRs are listed on European stock exchanges such as the London Stock Exchange.

Companies primarily issue the DRs to raise capital in the world markets. This improves the liquidity of the shares of the company while the status is also enhanced to that of a globally traded company. For the investors, they can diversify their risk by buying the DRs. These investors can also get benefits of better return on equity, dividend payments, etc. As an increasing number of Indian companies are now doing global business, there are about 70 companies that have issued DRs. At the Dalal Street Investment Journal, we present today the top 10 Sensex companies which have a high per cent of share capital in the form of DRs.

Sr No

Company Name Rs As % Of Total Share Capital DR Price In USD Sensex Price (Rs)

1

ICICI Bank

26.85

32.97

928

02

HDFC Bank

17.23

33.03

579.85

03

Dr Reddy’s Lab

16.79

29.65

1,649.20

04

Tata Motors

16.18

21.1

236.65

05

Infosys

13.47

38.75

2,265.25

06

Sterlite Industries

12.45

7.52

104.8

07

Hindalco Industries

8.4

Held by Morgan Guaranty
Trust Company (New York)

123.05

08

Mahindra & Mahindra

5.59

12.95

675.4

09

RIL

3.44

25.52

721.2

10

Tata Power
(Price Of Oldest GDS)

3.22

1,621.9

100.8

ICICI Bank

ICIICI BankChanda Kochhar-headed ICICI Bank is the largest private sector bank by its assets’ size and holds second place i.e. after HDFC Bank when it comes to market capitalisation. The bank has a network of 2,035 branches and about 5,518 ATMs in India and a presence in 18 countries. They have subsidiaries in the United Kingdom, Russia and Canada and branches in the United States, Singapore, Bahrain, etc. The bank’s equity shares are listed on the BSE and the NSE in India and it has American Depositary Receipts (ADRs) listed on the New York Stock Exchange. Incidentally, it is also the first Indian Bank to be listed on the New York Stock Exchange. Its total depositary receipts outstanding are 26.85 per cent of the total outstanding shares.

HDFC Bank

HDFCHDFC Bank Ltd is the largest private sector bank by market capitalisation and the second-largest private sector bank by total assets. The bank provides a wide range of banking and financial services, including commercial banking and treasury operations. The bank at present has an enviable network of 2,201 branches and 7,110 ATMs spread in 996 cities across India. They also have one overseas wholesale banking branch in Bahrain, a branch in Hong Kong and two representative offices in the UAE and Kenya. The bank’s shares are listed on the BSE and the NSE in India and its ADS’ are listed on the New York Stock Exchange (NYSE) while its GDRs are listed on the Luxembourg Stock Exchange. Its total outstanding depositary receipts are 17.23 per cent of the total outstanding shares.

Dr Reddy’s Lab

Dr Reddy’s Lab is one of the biggest pharmaceutical companies in India. The company has a presence in most of the regulated countries. It is one of the biggest beneficiaries of the generic boom in the U.S. and has a very robust pipeline of the products meant for the U.S. as well as the other markets. The company also has many products for which it has a ‘first to file’ (FTF) status which gives it an exclusivity of 180 days in the U.S. market. Its ADRs are listed on NYSE in the U.S. market. Its total outstanding ADRs are 16.79 per cent of the total shares.

Tata Motors

Tata Motors is the largest automobile manufacturer in India and is into the production of passenger and commercial vehicles. It also made an entry into the luxury car segment by acquiring Jaguar Land Rover, which now accounts for approximately 90 per cent of the profits of the company. This acquisition has given the firm leverage in terms of a geographical presence. A total of 16.18 per cent of the outstanding shares are on account of its DRs.

Infosys

Infosys, an IT major, operates all over the world with only about 2.4 per cent of the revenue being generated from India. In terms of revenue, it is the second-largest IT firm after TCS with revenues of Rs 33,734 crore in FY11-12. The operations of the firm are spread across a wide spectrum in terms of geography, industry and products & services. Its DRs account for 13.47 per cent of the total number of shares.

Sterlite Industries

Sterlite Industries, one of the largest non-ferrous metals and mining companies, is primarily into the business of aluminum, copper, zinc, lead and commercial energy.  Sterlite is the principal subsidiary of Vedanta Resources PLC, a diversified and integrated FTSE 100 metals and mining company, with principal operations located in India and Australia. Of the total outstanding shares, the company has 12.45 per cent of the shares listed as ADRs.

Hindalco Industries

Hindalco Industries is one of the leading producers of aluminum and copper. The company is also known as the metals flagship company of the Aditya Birla Group and is the world’s largest aluminum rolling company as well as one of the biggest producers of primary aluminum in Asia. The company also has a presence in the copper smelting business and has the world’s largest custom smelter at a single location. Of the total outstanding shares, the company has 8.4 per cent of the shares listed as GDRs.

Mahindra & Mahindra

Mahindra & Mahindra entered the Indian automotive market mainly as a utility vehicle manufacturer and grew gradually to include passenger vehicles and commercial vehicles in their product portfolio. Their exports run into various geographies and their synergies have widened their spread. The firm is also the largest tractor manufacturer and has newly entered the two-wheeler segment. A total 5.59 per cent of the outstanding shares are on account of its DRs.

Reliance Industries Limited

Reliance Industries (RIL) is one of the most valuable companies in India. RIL operates top-class manufacturing facilities across various locations in India. Its major operations are in the petrochemicals, refining and oil & gas segments. It produces hydrocarbons from the KG-D6 basin in south India. Its other business interests include textiles and retail. This year the company has set a huge target of capex in order to further create value for its shareholders. Its GDRs are listed on the London Stock Exchange and represent 3.44 per cent of its total share capital.

Tata Power

Tata Power, a Tata Group company which has over 100 years of operations in the country, is one of the biggest private power utility companies in India. It has a very good forward and backward integration with access to transmission, distribution, power trading, mining, etc. It also has solar power and defense electronics’ business. It has a capacity of over 5,000 MW and is the first company to commission the Ultra Mega Power Plant (UMPP) in India. Its outstanding depositary receipts are held by Citibank in the U.S. and represent 3.22 per cent of the total share capital.

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