The Hindu Business Line : Top 10 cos raise $3.1 billion through FCCBs

Mumbai, July 1 Ten Indian companies have raised a total of $3.1 billion through issue of foreign currency convertible bonds (FCCBs) in the first half of 2007, as per the financial data released by Bloomberg on Sunday.

The total volume of FCCBs issue is $4.8 billion. While Reliance Communications Ltd issued the largest FCCB of $1,000 million among Indian companies, Tata Motors Ltd stood at second position with an issue size of $490 million.

The other companies include JSW Steel Ltd, Sterling Biotech Ltd, Adani Enterprises Ltd, Subex Azure Ltd, Orchid Chemicals & Pharmaceuticals, Rolta India Ltd, Rajesh Exports Ltd and Tulip IT Services Ltd. The data also revealed that zero coupon seemed to be a preferred mode by most.

For Tata Motors the bonds would be convertible at an initial conversion price of Rs 960.96 per share, which is at a premium of 40 per cent to the company’s closing share price on the NSE as on June 20, 2007. In case of JSW, conversion price is of Rs 953.40 per share which would be 50 per cent premium to the closing price of Rs 635.60 on the NSE on May 29, 2007.

Sterling Biotech with an issue size of $250 million would have its bonds convertible into equity shares any time after June 18, 2007, at a conversion price of Rs 204.57 per share which represents a premium of 25 per cent to the average price.

More Stories on : Overseas Borrowings | Forex | Economy | Tata Motors Ltd

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