Pidilite Industries to raise $40 mn

Pidilite Industries launched an issue of $40 million (around Rs 157 crore) zero coupon foreign currency convertible bonds.

The funds raised will be used for capital expenditure, international acquisitions, and any other use as may be permitted under applicable law or regulations, from time to time. The bonds will be convertible into equity shares of the company, quoted in Indian rupees.

The five year zero coupon bonds have an yield to maturity of 6.75% per annum (calculated on a semi-annual basis), and are redeemable in 2012 i.e. after 5 years and 1 day from closing date. The bonds will be issued at par and redeemed, if not converted into shares, at 139.37% of par on maturity.

JPMorgan Securities is the Lead Manager Underwriter and Sole Bookrunner for the offering.