The Hindu Business Line : Moser Baer allots GDRs to Warburg Pincus

MOSER Baer India Ltd has announced that subsequent to all relevant approvals, the company has allotted Global Depository Receipts (GDRs) equivalent to 14.7 million underlying shares to affiliates of Warburg Pincus LLC.

In addition to the above, the company has also issued warrants, equivalent to 5.4 million shares to affiliates of Warburg Pincus LLC. The cumulative value of the above transaction, assuming all warrants are exercised, aggregates to Rs 675 crore (equivalent to $149 million at current exchange rates).

According to an official statement, each GDR is priced at an amount equivalent to Rs 33,600, translating into an effective price per underlying share of Rs 336, reflecting a significant premium to the current stock price of the company. Each warrant is convertible at the option of the investor into one equity share, at any time within 18 months from the date of allotment. The warrant holders will need to pay 10 per cent of the total consideration of the warrants upfront, which would be forfeited in the event the warrants are not exercised.

"This investment by Warburg Pincus, a high quality global investor, provides impetus to our expansion plans which will enable us to significantly increase our global marketshare of the lucrative DVDR market," said Mr Deepak Puri, Chairman and Managing Director, Moser Baer.

Post the issue and conversion of warrants, Warburg Pincus will hold 35.5 per cent of the company's equity, while International Finance Corporation and Electra Partners Mauritius Ltd, continue to remain significant shareholders with an 10.7 per cent and 5.5 per cent holding of the fully diluted equity of the company.

Citigroup are the sole investment bankers to the company on this transaction, while Luthra & Luthra are the company's sole legal counsels for this transaction.

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