The Apollo Hospitals board has approved the allotment of 13.8 lakh equity shares to International Finance Corporation (IFC), Washington, as the latter insisted to convert their foreign currency convertible bonds (FCCBs). With this, the company has no outstanding FCCBs.
IFC, a member of the World Bank Group, finances and provides advice for private sector ventures and projects in developing countries.
After this allotment, the paid-up share capital of the company has been increased to Rs 67.9 crore from Rs 67.2 crore.
Apollo Hospitals had issued 1,500 unsecured foreign currency convertible bonds (of $10,000 each), aggregating $15 million, to IFC, in June 2009. According to the terms of FCCB loan agreement dated June 18, 2009, IFC had an option to convert the FCCBs — wholly or partly — into equity shares at a price of Rs 605 a share of face value Rs 10 each. This is higher than the floor price of Rs 529.01 a share.
Stock split & after
In the mean time, the company had obtained shareholders' nod for a stock split from Rs 10 each to Rs 5 each. The stock split was effective September 3, 2010. Accordingly, the conversion price was adjusted to Rs 302.50 a share of Rs 5 each.
Based on a conversion request given by IFC, 50 per cent of the FCCB loan amount ($7.5 million) were converted into 11.4 lakh equity shares. The said shares were allotted to them on December 9, 2010.
IFC had also requested for conversion of the balance loan amount into equity shares. Based on the applicable exchange rate on May 25, 2012, it has been determined that a total of 13.8 lakh shares would need to be allotted to IFC, upon effecting the conversion.
The company share price closed down 1.63 per cent at Rs 665.45 on the BSE on Friday.