Strides successfully raises $100 mn via FCCBs

Strides Arcolab yesterday successfully completed the $100 mn foreign currency convertible bonds (FCCB) issue in Singapore.

According to a release issued by Strides to the BSE today, the company has fixed an initial conversion price is Rs 461.55 per share in 2012, which represents a 32.5% premium over the volume weighted average price from opening trade to pricing of Rs 348 on the National Stock Exchange of India yesterday.

The yield to maturity has been set at 7.575% and the Bonds will be redeemed at 145.06% at par on June 27, 2012. The lead manager exercised the $25 million increase option owing to high demand.

Arun Kumar, vice chairman and managing director, stated "We are delighted that this issue has generated strong demand and was over subscribed, reflecting a high level of confidence at the investors in the company's strategy and niche business model", the release added.