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Our Bureau

Plans to invest Rs 438 cr in expansion

Hyderabad , Sept 11

Nava Bharat Ventures Ltd (NBVL) has fixed conversion price for its proposed issue of zero coupon foreign currency convertible bonds (FCCBs) at Rs 136.50 a share.

The company, which has firmed up Rs 800-crore expansion-cum-diversification programmes, has launched its FCCB issue worth 525 crore yen (with an option to purchase an additional 75 crore yen) carrying zero coupon with maturity in 2011.

Edelweiss Capital Ltd and Lehman Brothers International (Europe) acted as the joint lead managers, while Lehman Brothers International (Europe) acted as the sole book runner and underwriter and Edelweiss Capital Ltd acted as Advisors to the FCCB issue, the company told the stock exchanges.

The bonds would be listed on the Singapore Stock Exchange and are convertible over a five-year period.

They are convertible into equity shares at the option of the bondholders with a yield to maturity of 4.67 per cent.

Mr D. Ashok, Managing Director, said that the company believes this is another important milestone in its progress.

The proceeds of the FCCB offering would be used in fuelling the expansion plans in power and sugar.

The company is setting up a 64 MW greenfield power plant at Orissa and is expanding capacity at its power plant in Andhra Pradesh by 32 MW.

It is also setting up a 2,500 tonnes crushing per day (tcd) - expandable to 5,000 tcd - integrated sugar facility with a 45 kl per day distillery and a multi-fuel power plant with a capacity of 20 MW.

These investments towards expansion, estimated to cost about Rs 438 crore, would increase the company's power generation capacity from 121 MW to 237 MW and sugar manufacturing capacity from 3,500 tcd to about 7,000 tcd over 18-24 months.

Further, the company proposes to invest around Rs 380 crore in infrastructure projects, the release said.

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Nava Bharat Ventures fixes FCCB conversion price

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