Mumbai based information technology service provider 3i Infotech said that it had repurchased a part of its foreign currency convertible bonds.
The company in a note to Bombay Stock Exchange said that it bought back $17 million worth of bonds out of $100 million bonds and 1 million Euro bonds out of 30 million bonds due in 2012. Both are zero coupon bonds said the company in the note.
Companies are buying back FCCBs as the stock prices have gone down below the conversion price fixed for the due date. Hence the companies will have to pay the bond holders instead of converting the bonds in to equity shares.
The stock of the company had gained to Rs41.7 a share on BSE at 2.10 pm, a 5.8 per cent rise from the previous day closing. Sensex, the benchmark index of the exchange was at 11,197, about 2.1 per cent higher than the previous day closing at the same time.
