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Gujarat NRE pays $17.5 m for FCCB conversions

08 Apr 2011 Evaluate

Gujarat NRE pays $17.5 m for FCCB conversions

Gujarat NRE Coke on has paid $17.4 million for the conversion of its 174 zero coupons unsecured foreign currency convertible bonds (FCCB) to the bond holders. The FCCBs were of $1,00,000 value each and were part of 600 FCCBs issued in 2006 by the company, aggregating to $60 million. The payment will not impact the balance sheet of the company as sufficient provisions have already been made for the payment.

Of the 600 FCCBs, the company had already paid the conversion price for 324 FCCBs in past and today's transaction of 174 completes the payment schedule. Some time back, the company had successfully paid the conversion price of its previous issue of 2,200 FCCBs, issued at $25,000 each in 2005 and aggregating $55 million to its bond holders in past.

The company is aiming to become one of the top 10 hard coking coal producers in the world. The company has also undertaken extensive exercise to increase its coking coal production from its Australian mine to 6 million tonne per annum by 2014-15 from current level of 1.5 million tonne per annum.The company owns and operates a coking coal mine in Australia, having around 625 million tonne of coking coal resources with excellent coking properties.crackcrack

Peers
Company Name CMP
Petronet LNG 275.80
Bharat Coking Coal 36.34
Linde India 7072.45
Refex Industries 258.10
IRM Energy 217.25
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