Gremach Infra raises $50 mn via FCCBs

Gremach Infrastructure Equipments & Projects today announced that it has placed an offering of $50 million 1% foreign currency convertible bonds (FCCBs).

The bonds have a tenor of five years and one day and are convertible into equity shares at a price of R 376.36 per share.

The company plans to use to the fund raised for its foray into oil rig business as may be permitted by the Indian law and RBI regulation.

"The funds raised by the FCCBs will provide an impetus for organic opportunities available to the company in oil rig business globally,"said Rishi Raj Agarwal, managing director of the company.

The FCCBs issue was oversubscribed by 60%. Bonds are expected to be listed on the Singapore Stock Exchange and closing is likely to take place on January next year.

Standard Chartered Bank acted as sole book runner and Atherstone Capital Markets acted as financial advisor for the issue.