Amtek India is trading higher by 3% at Rs 101 after the company said it priced an issuance of $130 million (approx Rs 650 crore) foreign currency convertible bonds (FCCBs) due 2017.
“The FCCBs, which have a maturity of 5 years and 1 day, are convertible at the initial conversion price of Rs 103.005 per equity share. The FCCBs will bear a coupon of 6.00% payable on a semi-annual basis," the company said in a filing to the stock exchanges.
The company intends to use the FCCB proceeds for future acquisitions and capital expenditures. The use of net proceeds shall be in accordance with the net use restrictions specified by the Reserve Bank of India
The FCCBs are expected to be issued and settled on or around April 05, 2012 and subsequently listed on the Singapore Exchange Securities Trading Ltd., (the "SGX-ST"), subject to receipt of approval from the SGX-ST.
Around 10,000 shares have changed hands on the counter so far on the NSE and BSE.
