Chennai-based Orchid Chemicals and Pharmaceuticals has redeemed its outstanding foreign currency convertible bonds, including yield-to-maturity, aggregating $167.64 million on the due date February 28.
These bonds were issued in February 2007.
External borrowing
While $97 million came from external commercial borrowings from a consortium of Indian banks, the remaining came from internal accruals. “We are satisfied that we redeemed the FCCB without altering our capital structure or replacing the entire outstanding by way of debt.
This signifies that our business is generating cash which we have utilised to part-pay the debt,” said Mr K. Raghavendra Rao, Chairman and Managing Director.
The company's share price was up 4.98 per cent on Tuesday at Rs 187.60 on the BSE.