Metal pipe manufacturer Welspun-Gujarat Stahl Rohren today said it will raise $150 million (nearly Rs 720.2 crore) by a foreign currency convertible bond (FCCB) issue.
The company has priced FCCBs at $130 million, with an option to raise an additional amount of $20 million if the issue is fully subscribed, Welspun-Gujarat Stahl Rohren said in a filing to the Bombay Stock Exchange.
“This new FCCB issuance, one of the first issuance in the Indian market after almost 18 months, depicts the faith investors have in the prospects of our company,” Welspun-Gujarat Stahl Rohren Chairman and Managing Director B K Goenka said.
The FCCBs are expected to be listed on the Singapore Exchange and JP Morgan has acted as the sole book-runner to the transaction, the filing added.
Shares of Welspun-Gujarat Stahl Rohren were trading at Rs 257.25 on BSE, down 3.31 per cent from previous close.