Price Movements and Performance of shares listed on

NSE/BSE and its ADR/GDR counterpart - A comparative

study of select Indian companies
Introduction to ADR & GDR
ADR
An American depositary receipt (ADR) is a negotiable security that represents
securities of a non-US company that trade in the US financial markets. Securities of
a foreign company that are represented by an ADR are called American depositary
shares (ADSs). The largest depositary bank is The Bank of New York.
Shares of many non-US companies trade on US stock exchanges through ADRs.
ADRs are denominated and pay dividends in US dollars and may be traded like
regular shares of stock. Over-the-counter ADRs may only trade in extended hours.
The first ADR was introduced by J.P. Morgan in 1927 for the British retailer
Selfridges.

GDR
A global depository receipt or global depositary receipt (GDR) is a certificate issued
by a depository bank, which purchases shares of foreign companies and deposits it
on the account. GDRs represent ownership of an underlying number of shares.
Global depository receipts facilitate trade of shares, and are commonly used to
invest in companies from developing or emerging markets.
Prices of global depositary receipt are often close to values of related shares, but
they are traded and settled independently of the underlying share.
Several international banks issue GDRs, such as JPMorgan Chase, Citigroup,
Deutsche Bank, Bank of New York. GDRs are often listed in the Frankfurt Stock
Exchange, Luxembourg Stock Exchange and in the London Stock Exchange, where
they are traded on the International Order Book (IOB). Normally 1 GDR = 10 Shares,
but not always. It is a negotiable instrument which is denominated in some freely
convertible currency. It is a negotiable certificate denominated in US dollars which
represents a non-US Company's publicly traded local equity.
Characteristics of GDRs:
1. It is an unsecured security
2. A fixed rate of interest is paid on it

3. It may be converted into number of shares

4. Interest and redemption price is public in foreign agency
5. It is listed and traded in the share market
American Depositary Receipt (ADR) Stock Prices
ADR is a list of all the Indian Companies listed on New York Stock Exchange under
the American Depository Receipts (ADR) category.
This list gives you a Current Market Price (US $), Total Number of Shares (in
Millions), Change (US $) and % Change
Company
Mahanagar Telephone Nigam
Ltd
Rediff.com India Ltd
Sify Technologies Ltd
HDFC Bank Ltd
ICICI Bank Ltd
Satyam Computer Services
Ltd
Tata Communications Ltd
Dr Reddys Laboratories Ltd
Wipro Ltd
Silverline Technologies Ltd
Tata Motors Ltd
Patni Computer Systems Ltd
Infosys Ltd

CMP(US$
)
0.95

Chg(US$)
0.08

Chg(%
)
8.7

3.10
2.15
41.11
45.00
0.00

0.09
0.04
0.21
0.05
0.00

3.0
1.9
0.5
0.1
0.0

9.16
34.18
8.94
8.86
28.83
18.40
42.68

[0.01]
[0.23]
[0.09]
[0.14]
[0.46]
[0.30]
[0.79]

[0.1]
[0.7]
[1.0]
[1.6]
[1.6]
[1.6]
[1.8

Global Depositary Receipt (GDR) Stock Prices

GDR is a list of all the Indian Companies listed on more than one countrys stock
exchange under the Global Depository Receipts (GDR) category and can be traded
globally.
This list gives you a Current Market Price (US $), P/E, Change (US $) and % Change.
Company

CMP(US$) Chg(US$)

Chg(%
)

Dr. Reddy's (A)

34.18

[0.23]

[0.7]

GAIL (G)

41.13

0.45

1.1

Grasim Industries (G)

57.92

[0.41]

[0.7]

ICICI Bank (A)

45.00

0.05

0.1

Infosys Tech (A)

42.68

[0.79]

[1.8]

Instanex Skindia DR Index

2,441.21

[15.05]

[0.6]

ITC (G)

5.14

[0.06]

[1.2]

L & T (G)

29.74

[0.63]

[2.1]

Mahindra & Mah. (G)

17.06

0.02

0.1

Ranbaxy Labs (G)

9.64

[0.05]

[0.5]

Reliance (G)

31.55

[0.20]

[0.6]

Satyam Computers (A)

2.64

0.00

0.0

State Bank of India (G)

92.54

1.04

1.1

Sterlite Industries (A)

8.86

[0.14]

[1.6]

Tata Communications (A)

9.16

[0.01]

[0.1]

Tata Motors (A)

28.83

[0.46]

[1.6]

Scope of this article

For this article following companies are considered:
Company Name

Industry

Dr. Reddy's Laboratories

Ltd.
ICICI Bank Ltd.
Infosys Ltd.
Tata Motors Ltd.

PHARMACEUTICALS
BANKS
COMPUTERS - SOFTWARE
AUTOMOBILES - 4
WHEELERS

Reason for selecting these companies:

1. Both ADR & GDR are listed
2. Nifty 50 companies
3. Diversified sectors

ADR GD
R
Yes
Yes
Yes
Yes
Yes

Yes
Yes
Yes

Dr. Reddy's Laboratories Ltd.

52 week
Mkt cap
P/E
Div/yield
EPS
Shares
Beta
Inst. own
Quarterly
Returns
Q1
Q2
Q3
Q4

NYSE: ADR
27.28 - 35.16
5.85B
20.14
0.25/0.72
1.71
169.83M
1.12
13%
NYSE

NSE
1,526.40 1,927.00
324.54B
20.33
13.75/0.72
93.99
169.83M
NSE

11.9%
-15.2%
3.9%
10.7%

6.3%
-8.7%
-1.5%
14.5%

Dr. Reddys laboratories ltd. has recovered in Q412 if compare returns on quarterly
basis on both exchanges. However, on comparing daily returns there is not much of
a correlation between the two. ADS price has been following the movement on NSE
but not the magnitude of the movement.
Here is a correlation summary:

Correlati
on
NYSE
Change
%
NSE
Change
%

NYSE
Change%

NSE
Change %

100%

17%

100%

ICICI Bank Ltd

NYSE
Range
52 week
Open
Vol / Avg.
Mkt cap
P/E
Div/yield
EPS
Shares
Beta
Inst. own

Quarterly
Returns
Q1
Q2
Q3
Q4

NSE
-

1,173.70 1,187.90
767.40 1,188.00
1,178.25
3.60M

27.50 45.89
0.00/1.31
M
25.59B
22.91
0.57/1.29
1.94
576.44M
2.1
27%

NYSE

1.36T
39.22
16.50/1.40
30.1
1.15B
-

NSE

14.9%
-9.5%
23.9%
10.0%

14.1%
1.0%
18.4%
12.3%

ICICI has recovered in Q412 if compare returns on quarterly basis on both

exchanges. However, on comparing daily returns there is not much of a correlation
between the two. ADS price has been following the movement on NSE but not the
magnitude of the movement.
Here is a correlation summary:
NYSE
Change%
NYSE
Change%
NSE Change
%

NSE
Change
%

100%
12%

100%

Infosys Ltd

Range

NYSE: ADR
42.44 - 43.00

52 week

37.93 - 60.86

Open
Vol / Avg.
Mkt cap
P/E
Div/yield
EPS
Shares
Beta
Inst. own

42.44
1.31M/1.89M
24.41B
13.81
-/1.47
3.09
571.40M
1.21
15%
NYSE

Quarterly
Returns
Q1
Q2
Q3
Q4

NSE
2,323.30 2,361.80
2,060.55 2,994.00
2,340.20
768,746.00
1.33T
14.25
15.00/1.59
163.56
571.40M
NSE

10.0%
-21.5%
6.9%
-14.0%

10.3%
-12.6%
4.8%
-9.1%

Infy has didnt do well in Q412 if compare returns on quarterly basis on both
exchanges. However, on comparing daily returns there is not much of a correlation
between the two. ADS price has been following the movement on NSE but not the
magnitude of the movement.
Here is a correlation summary:
NYSE
Change%
NYSE
Change%
NSE Change
%

NSE
Change
%

100.00%
-3.37%

100.00%

Tata Motors Ltd.

Range

NYSE: ADR
42.44 - 43.00

52 week

37.93 - 60.86

Open
Vol / Avg.
Mkt cap
P/E
Div/yield
EPS
Shares
Beta
Inst. own

42.44
1.31M/1.89M
24.41B
13.81
-/1.47
3.09
571.40M
1.21
15%
NYSE

Quarterly
Returns
Q1
Q2
Q3
Q4

NSE
1,173.70 1,187.90
767.40 1,188.00
1,178.25
3.60M
1.36T
39.22
16.50/1.40
30.1
1.15B
NSE

36.5%
-21.0%
16.9%
9.6%

54.9%
-16.2%
24.0%
8.2%

Tata Motors recovered in Q312 if compare returns on quarterly basis on both

exchanges. However, on comparing daily returns there is not much of a correlation
between the two. ADS price has been following the movement on NSE but not the
magnitude of the movement.
Here is a correlation summary:
NYSE
Change%
NYSE
Change%
NSE Change
%

Over all conclusion,

NSE
Change
%

100%
-1.72%

100%

ADS return does not necessarily track NSE stock returns.