Financial Daily from THE HINDU group of publications
Saturday, Feb 25, 2006
Financial Daily from THE HINDU group of publications Saturday, Feb 25, 2006 |
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Corporate
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Overseas Borrowings Electrosteel Castings FCCB issue likely in April Mohan Padmanabhan
Kolkata , Feb. 24 The issue of foreign currency convertible bonds (FCCBs) by Electrosteel Castings Ltd (ECL) is expected sometime in April this year. The issue is aimed at raising $75 million (approximately Rs 332 crore) to fund its expansion plans. Speaking to Business Line today, Mr S.Y. Rajagopalan, Director (Finance), said that the FCCB issue received shareholders' nod at a recent ordinary general meeting. The issue is being handled by Citibank. According to him, the April date for the FCCB issue was set because of the end of the GDR lock-in period of six months. ECL successfully raised $40 million in September 2005 through issue of 45,71,428 GDRs, including a greenshoe option of $5 million. Mr Rajagopalan said that the GDR issue, which had HSBC Bank and Jermyn Capital Partners as lead managers, generated demand from investors, mainly at London, Hong Kong, and Singapore. ECL shareholders have also approved an estimated capital expenditure of Rs 337 crore for the proposed captive coal mining project and a Rs 66-crore sinter plant with a capacity of 850 tonnes a day for increasing liquid metal availability from the blast furnace. The board has been authorised to offer, issue, and allot any securities in one or more tranches including GDRs, FCCBs, etc. Mr Rajagopalan said that the company was still awaiting issue of the mining lease from the Jharkhand Government for the captive coal mining project at the Jharia coal block.
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