The Hindu Business Line : Gremach raises $50 m from overseas markets

MUMBAI: Construction equipment leasing firm Gremach Infrastructure Equipments & Projects on Tuesday said that it has raised $50 million through the issue of Foreign Currency Convertible Bonds (FCCBs) in the international markets.

The bonds are expected to be listed on the Singapore Stock Exchange and closing is likely to take place on January 21, 2008, subject to requisite approvals, the company said in a filing to the BSE.

"The successful launch of the FCCB is a reflection of international investors' confidence in the growth prospects and management of the company,'' Gremach's Managing Director Rishi Raj Agarwal said.

The FCCB issue was oversubscribed by 60 per cent. The company intends to use the net proceeds of the issue for foraying into oil rig business as may be permitted by Indian law and RBI regulation.

"The funds raised by the FCCB will provide an impetus for organic opportunities available to the company in oil rig business globally,'' Mr Agarwal added.

The bonds have a tenure of five years and one day and are convertible into shares at Rs 376.36 each.

Standard Chartered Bank acted as sole book runner and Atherstone Capital Markets was the financial adviser for the FCCB issue. Shares of Gremach were trading at Rs 351.25, up 2.05 per cent on the BSE in morning trade. - PTI

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