The Securities Issuance Committee (SIC) of the Board of Directors of Jain Irrigation Systems Ltd (JISL) has firmed up plans for raising long-term funds of close to Rs 1,125 crore through various instruments.
This will be in addition to the Rs 64 crore to be mobilised by issuing warrants to the promoters.
In a communication to the stock exchanges, JISL said it has planned to issue equity shares on preferential basis for nearly $73 million (equivalent to Rs 405 crore) at Rs 80 per share or the issue price worked out in accordance with the provisions of the SEBI (ICDR) Regulations, 2009 (Regulation 76), whichever was higher.
The committee approved mobilisation by way of issue of Foreign Currency Convertible Bonds (FCCBs) to raise up to $55 million (equivalent to approximately Rs 305.5 crore). The conversion would be at Rs 115 per share at any time during the period of five years. The FCCB would carry a coupon of 3 per cent per annum and yield-to-maturity of 6 per cent.
These FCCBs would not be listed on any international stock exchange but the resultant equity shares would be listed on the Indian stock exchanges. They will be repaid in one tranche after five years, if they are not converted into equity shares.
The SIC also decided to raise LIBOR-linked External Commercial Borrowings (ECBs) of up to $75 million (Rs 416.5 crore), with a tenor of six-10 years.
The company’s Securities Issuance Committee (SIC) had already cleared allotment of equity warrants worth about Rs 64.72 crore to the promoter group on August 27.
The shares of JISL were trading at Rs 62.85, down by Rs 1.35 on the BSE about an hour before trading was to close. The stock has come down sharply in the last one year — from a high of Rs 182.90 on September 12 last year to a low of Rs 60.10 on Monday.