 "Photo: istock")
Hyderabad-based logistics company Gati Limited said it has finally settled the issue related to the conversion of the foreign currency convertible bonds (FCCBs) with its investors by offering redemption as well as conversion of the FCCBs into equity shares.
In December 2011, the company had re-issued FCCBs to Goldman Sachs International for $22 million, essentially to redeem the outstanding FCCBs that were originally issued in 2006. These FCCBs had a five-year maturity time, ending on December 2016. Following the settlement, the company's overall debt has come down to Rs 390 crore, Gati said.
Commenting on the development, the company's founder and CEO, Mahendra Agarwal, said: "I am glad to inform that with sustained efforts, Gati has finally closed the FCCBs through redemption/conversion in its entirety. In the context of complex regulations, this FCCB closure is a significant development and we believe it will enhance the shareholders' confidence."
As part of the conversion route offered by the firm, investors have been allotted 10 million shares to its investors. As a result of this, the promoter shareholding has come down by 3.72 per cent to a little over 29 per cent. Gati registered a consolidated revenue of Rs 426.7 crore and a net profit of Rs 18.3 crore in the quarter ending on June 2017.
The company's scrip rose 5.61 per cent or Rs 6.05 at Rs 113.90 on the Bombay Stock Exchange on Wednesday.
