Date:01/12/2005 URL: http://www.thehindubusinessline.com/2005/12/01/stories/2005120101910200.htm

Back Welspun-Gujarat raises $75 m via FCCBs

Our Bureau

Mumbai , Nov. 30

WELSPUN-Gujarat Stahl Rohren Ltd has announced that it has raised $75 million foreign currency convertible bonds (FCCBs).

These zero coupon bonds have a tenor of five years and are convertible into equity shares at a conversion price of Rs 162.64 per share which indicate a premium of 74.24 per cent to the BSE closing price of Rs 93.35 on November 28.

The issue was oversubscribed by investors across Asia and Europe. The bonds are listed on Singapore Exchange Securities Trading Ltd.

The funds would be used to part finance 1.2-million-tonne per annum, wide width, plate and coil mill, which is likely to be fully operational by March 2007. "This Rs 1,225-crore backward integration will be an import substitution of high grade, steel plate that the company imports and which are in short supply due to very few suppliers across the globe,'' the company informed BSE.

Shares of Welspun Gujarat Stahl closed at Rs 90.30 on the BSE on Wednesday.