Pharma player Jubilant Organosys today said it has repayed $69 million (about Rs 325 crore) debt, which the company had raised by issuing foreign currency convertible bonds (FCCBs).
The company has repayed FCCBs amounting to $50 million along with the yield to maturity (YTM) of $19 million. The FCCBs were due for redemption on May 24, 2010.
"The company has made the repayment as per schedule, in line with the terms and conditions of the FCCB instrument, underlining the company's healthy balance-sheet position," Jubilant Organosys said in a statement.
The drug maker had a net worth of Rs 2,201 crore and a total debt of Rs 3,120 crore at the end of financial year 2009-10. Its net debt (net of cash) at present stands at Rs 2,577 crore.
"It is the company's strategy to bring down the leverage to less than a level of 1:1. Accordingly, in addition to its internal accruals the company raised a QIP of $85 million and met its obligation of FCCB repayment," Jubilant Organosys CMD Shyam S Bhartia said.
With this repayment of FCCBs and the pre-payment of its Indian rupee debt in April 2010, there is a substantial improvement in the financial ratios with a very low average interest cost of 4.51 per cent, the firm said.
"Going forward as well Jubilant is very comfortably placed to meet all its debt obligations, including the FCCBs due in the year 2011," Bhartia added.
Shares of Jubilant Organosys today settled at Rs 338, up 1.96 per cent, on the Bombay Stock Exchange.
