Our Bureau

Chennai, May 3

India Cements Ltd has entered into a subscription agreement for its $75 million (Rs 340 crore) foreign currency convertible bonds on Tuesday.

According to a company press release, the bonds with a maturity of five years and one day are convertible at a price of Rs 305.57 a share, which is at a 30 per cent premium over the closing price of Rs 235.05 a share on the National Stock Exchange on Tuesday. The shares closed at Rs 229.40 on Wednesday.

The bonds, according to the release, are zero coupon bonds with a yield to maturity of 7.95 per cent calculated on a semi-annual basis.

The issue was oversubscribed within a few hours of its launch. Company officials said a number of funds had subscribed to the issue.

The bonds were expected to be listed on the Singapore Exchange Securities Trading Ltd.

The release said the funds would be used for capital expenditure and for repayment of existing debt.

The capital expenditure included upgrading and expanding capacity by 2 million tonnes and for certain cost saving proposals.

ABN Amro Rothschild and Deutsche Bank acted as joint bookrunners for the issue.

(This article was published in the Business Line print edition dated May 4, 2006)
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