The Hindu Business Line : Shanthi Gears board clears FCCB issue

THE board of directors of Shanthi Gears Ltd at their meeting on Friday decided to issue FCCBs (foreign currency convertible bonds) up to $15 million to fund the company's expansion programme.

The company has convened an EGM on September 23 to obtain the shareholders' approval for the proposal.

A company source told Business Line that Shanthi Gears preferred the FCCB route rather than the debt option or issuing of fresh equity to raise resources. On the plans for expansion and how the company plans to deploy the funds once raised, the source said it was premature to discuss the details.

Once the permission is received for the FCCB issue, the company will decide on the modalities of raising the resources through the bond issue, he said.

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