JK Paper today said it had issued foreign currency convertible bonds (FCCBs) worth 35 million euro (about Rs 225 crore) to various global investors to partially fund its capacity expansion.
The company has issued FCCBs worth 9 million euro with a maturity date of May 15, 2016, and FCCBs worth 6.5 million euro with a redemption date of November 15, 2016, JK Paper said in a filing to the Bombay Stock Exchange (BSE).
The company has also issued bonds worth 6.5 million euro each with maturity dates of May 15, 2017, and November 15, 2017 respectively, it added.
Further, it has issued a series of convertible bonds worth 6.5 million with a redemption date of May 15, 2018.
"The said FCCBs are convertible into equity shares anytime after 3-5 years from date of the issue of the FCCBs at an initial conversion price of Rs 65 per equity share of Rs 10 each, subject to adjustments for the FCCBs," the company said.
If FCCBs are not converted, they are repayable between 5th and 7th years from date of issue, it added.
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The foreign investors to which the FCCBs were issued are from Germany, France and the Netherlands.
One of the leading producers of office paper, coated paper and high-end packaging board paper in the country, JK Paper has 28% market share in office paper, 26% in packaging board paper and 16% in coated paper in the domestic market.
As per industry estimates, the Indian paper market is valued at around Rs 40,000 crore per annum.
JK Paper has taken up expansion project to increase the total installed capacity from 2,40,000 TPA to 3,90,000 TPA at its unit at Rayagada in Orissa at an investment of around Rs 1,650 crore.
The company had stated that it would be funded through Rs 150 crore of internal accruals, Rs 250 crore of rights issue, Rs 225 crore of FCCB issue and Rs 1,050 crore of debt.
Shares of JK Paper today closed at Rs 49.75 on BSE, up 5.51% from its previous close.