Tulip IT $125mn FCCB conversion at 34% prem

Tulip IT Services today announced the conversion price of its zero coupon foreign currency convertible bonds (FCCBs) of  $125 million.

According to a release issued to the BSE today, the FCCBs will be converted to shares at Rs 1,137.22 per share - a premium of 34% to Rs 848, the closing price of the company's scrip on the BSE on June 26, 2007.

The yield to maturity has been set at 7.38% and the bonds will be redeemed 144.51% of par on August 26, 2012 (if not previously converted, redeemed or purchased and cancelled), the release said.

The lead manager has an option to increase the issue size by an additional $25 million, the release added.