Educomp soars on $155 mn tie-up to repay FCCBs

The company has arranged for $155 million to pay off foreign currency convertible bonds (FCCB) of $78.5 million on due date

Educomp Solutions has soared 11% to Rs 152 after the company said that it has arranged $155 million to pay off foreign currency convertible bonds (FCCB) of $78.5 million on due date.

“The board of directors approved a comprehensive financing package of $155 million. Of this amount, approximately $111 million is proposed to be utilised for existing FCCB redemption including redemption premium, the balance would be utilised towards capex, and strengthening the balance sheet of the company,” the company said in a filing to the stock exchanges.

Components of the financing package are expected to close simultaneously before the FCCB redemption date, it added.

The stock opened at Rs 138 and hit a high of Rs 153 on the Bombay Stock Exchange. A combined 5.5 million shares have already changed hands in morning deals, against an average around below 3 million shares that were traded daily in past two weeks on both the exchanges.