Financial Daily from THE HINDU group of publications
Saturday, Jul 09, 2005
Financial Daily from THE HINDU group of publications Saturday, Jul 09, 2005 |
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Corporate
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Overseas Borrowings 2 Indian cos raise $125 m in overseas markets Our Bureau
Mumbai , July 8 GLOBAL investors remained bullish on investing in India with two Indian companies raising funds in overseas markets on Thursday and Friday. The two issues aggregated $125 million as foreign investors seemed to have bought the Indian story. Motherson Sumi Systems Ltd, a market leader with over 65 per cent in the automotive wiring harnesses market in the country, today executed a subscription agreement for the issue of foreign currency convertible bonds (FCCBs) worth euro 50.3 million. Significantly, the FCCBs are being raised at a 50 per cent premium. The company informed the stock exchanges that pursuant to resolutions passed by the its board of directors at a meeting held on March 31 and thereafter its shareholders at the meeting held on May 10, the company finalised the deal today, with Nomura International (Hong Kong) Ltd and ICICI Securities Inc acting as joint lead managers for the transaction. The foreign currency convertible bonds will have a maturity of 5 years and will be convertible at a conversion price of Rs 111.45 per share, a 50 per cent premium over the closing price of the shares of the company on Thursday. This is understood to be among the first Euro-denominated FCCB transactions from Asia. The foreign currency convertible bonds will carry a zero coupon rate with a yield to maturity of 4.8 per cent a year at the end of the tenure, if not converted into shares during this period. The bonds are likely to be listed on the Singapore Stock Exchange soon. ICICI Securities Ltd had announced that its wholly-owned subsidiary, ICICI Inc, had been granted permission by the Monetary Authority of Singapore to commence operations only a week ago. The Motherson Sumi FCCB placement is the first deal by ICICI Inc. Meanwhile, amidst the panic set off by the London blasts, Apollo Hospitals Enterprise Ltd on Thursday raised $65.1 million through the issue of 8.35 million Global Depositary Receipts (GDRs), excluding greenshoe option. Each GDR represents one underlying share and will be listed on the Luxembourg Stock Exchange. The GDRs were placed through a book building exercise. Citigroup and Kotak acted as book runners and joint lead managers while I-Sec was the co-lead manager. The issue generated demand of about 4 times from investors across US, Asia and Europe. The GDR was priced at $7.8 (Rs 340) against a closing price of Rs 347.95 a share on the BSE on Thursday.
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