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United Phosphorus eyeing to raise Rs 250 crore via bonds

06 Jul 2011 Evaluate

United Phosphorus is eyeing to raise Rs 250 crore through 15-year bonds at a coupon of 10.70 percent. The issue has got a call option at the end of the 10th year and it will also carry a step-up of 20 basis points if the call is not exercised. The issue is rated AA+ by CARE and BRICKWORKS and Yes Bank is the sole arranger to the deal.

Recently, United Phosphorus received board’s approval for merger of its overseas subsidiary United Phosphorous (Mauritius) into itself. The company received the approval at its board meeting held on May 25, 2011.

United Phosphorus is the largest Indian agrochemical company and is engaged in research, manufacturing, selling and distribution of agrochemicals and specialty chemicals across the globe. The company has registered fall of 13.12% in its net profit from Ordinary Activities after tax for the year ended March 31, 2011 at Rs 157.50 crore as compared to Rs 181.29 crore for the year ended March 31, 2010. Its total income has increased by 16.65% at Rs 3064.68 crore for the year ended March 31, 2011 from Rs 2627.34 crore for the year ended March 31, 2010.

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