Mumbai, Jan 23 : The share capital of Gujarat Ambuja Cement Ltd (GACL) is expected to go up by Rs 20 crore as a result of conversion of its foreign currency convertible bond of $100 million into shares. The share capital will go up from Rs 147.10 crore to about Rs 167.77 crore and the share premium account of the company will go up by about Rs 439 crore.The Financial Express had earlier reported that GACL was planning to raise funds in the international markets to fund its debt obligations which have to be retired following the ACC share acquisition and to fund its capacity expansion programme. The company got response to the tune of $750 million to its issue size of $90 million with a greenshoe option of $9 million. The company got encouraging response from investors from Asia, the UK, Europe and the US. The bond has a maturity period of five years and conversion option of any time from the issuance till maturity.
The rate of interest is 1 per cent per annum and the yield to maturity rate is 4.6 per cent per annum.
The conversion price is at Rs 222.34, a premium of 28 per cent on GACL's closing price of Rs 173.70 on the BSE on January 22. GACL has been able to price the convertible bond at the maximum end of the indicative terms, according to a company press release.
The bond is credit enhanced bond carrying international credit rating of Bank of America.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
