Leyland $100m FCCB oversubscribed

Ashok Leyland Ltd's $100 million foreign currency convertible bonds (FCCB) have been subscribed about five times within a few hours of the issue opening.

The principal shareholder, LRLIH Ltd, UK, subscribed to and was allocated notes aggregating $50.93 million.

"The issue, which opened after National Stock Exchange (NSE) trading hours on April 22, 2004, was subscribed approximately five times, and was priced within a few hours of the offer opening," a company press release stated.

The notes, slated to be listed at the London Stock Exchange, are convertible to either equity share or GDSs, at the option of the bond holder.

The conversion price will Rs 335 per share, which reflects a 21.6 per cent premium over the closing price of Rs 275.50 posted by the scrip on April 22, 2004, on the NSE. The bonds (notes) carry a coupon rate of 0.5 per cent p.a. and will be redeemable at par at the end of 5 years, if not converted into equity shares or GDSs during this period.