Sintex Industries, a leader in plastic processing and textiles businesses, has redeemed Foreign Currency Convertible Bonds (FCCBs) worth $291 million on due date, despite tough liquidity conditions persisting in the macro environment, thereby reinstating confidence of shareholders and well wishers in the company and its management.
The company had issued FCCBs aggregating $225 million on March 12, 2008, each bond having face value of $ 100,000. The zero-coupon bonds were to be redeemed at a premium of 29.28% on March 13, 2013. The redemption was achieved through a prudent mix of step down coupon FCCBs aggregating $140 million, a QIP, internal accruals and preferential warrants to promoters.
The fresh FCCB issue was fully subscribed. This reflects the investor’s confidence in the robustness of the company’s business model and trust in the management to deliver against all odds. The preferential warrants will increase the equity capital to approximately Rs 32.91 crore, and the promoter’s holding in the company to 39.33% after conversion of warrants.
| Company Name | CMP |
|---|---|
| Welspun Living | 161.65 |
| Vardhman Textiles | 657.00 |
| Arvind | 508.05 |
| K.P.R. Mill | 1151.20 |
| Page Industries | 39337.05 |
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