Jubilant Organosys plans to buyback its FCCB December 27, 2008
Posted by dhirendra1972 in Foreign Currency Convertible Bonds, Market Slowdown.Tags: Bonds, Discount, Shares
add a comment
Chemicals and drugmaker Jubilant Organosys is planning to buyback its foreign currency convertible bonds (FCCB). The company’s board today decided to explore opportunities of buying part of the $250 million FCCBs from its investors.
The company’s executive director (Finance) R Sankaraiah told ET that the company is willing to buyback FCCBs at ‘the right price’ but has not decided the quantum of the buyback.
The company has around $250 million FCCB borrowings — $50 million expires in May 2010 while the remaining matures in May 2011. The company had raised these money largely to fund its big ticket global acquisitions.
Delhi-based Jubilant Organosys shares at the Bombay Stock Exchange (BSE) closed at Rs 115.65 on a weak Friday market, down 1.1% from Thursday close of 116.95.
Earlier this month, Reserve Bank of India (RBI) allowed companies to buyback FCCBs if they are at a discount of atleast 25% to the book value of the stock. The buyback has to be funded in rupee resources and companies can buyback bonds worth upto $50 million.
Several Indian companies were quick to use this opportunity to buyback FCCBs as shares prices across sectors have slumped due to the market slowdown.
Some of these companies include telecom major Reliance Communications, Amtek Auto, Man Industries, Orchid Chemicals, Bharat Forge and United Phosphorus.
ref: theeconomictimes
