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A company’s GDRs are quoting at a premium to the domestic market price of its shares

Accounting

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A company’s GDRs are quoting at a premium to the domestic market price of its shares. The company therefore decides to make a GDR FPO. Simultaneously, based on shareholders’ demand, the company also decides to float a sponsored GDR issue. The i-banker recommends a composite offer of sponsored  components which the i-banker says is not possible. The i-banker is right.

(a) Yes    (b) No