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is trading 2% higher at Rs 193 after the company said it has redeemed all
outstanding $139.2 million foreign currency convertible bonds (FCCBs) on maturity date i.e. May 17,
2011.

͞The company had issued FCCBs aggregating to $200 million of Tranche A andTranche B, in May 2006.
After repurchase and cancellation of FCCBs from time to time, the outstanding nominal value of FCCBs
of $139.20 million has been paid in full at the redemption price of 146% of its principal amount on
maturity date i.e. May 17, 2011 as per the terms and conditions of the offering circular dated May 12,
2006," it said in a filing to the stock exchanges.

The company has paid an aggregate amount of $203.86 million for both aforesaid tranches, it added.
Around 25,000 shares have already changed hands on the counter in opening trades.

During 2005, Aurobindo had issued 60,000 Zero coupon foreign currency convertible bonds (FCCBs) and
raised $60 million. These were due for conversion/repayment in 2010 By early August 2010, FCCBs
worth $57.88 million have been converted/repurchased. The balance amount of $2.12 million is due for
redemption in the second week of August 2010 and arrangements have been made to meet the
commitment on due date. Reduced debt, lower interest rates, improved cash flow and better utilization
helped bring down the interest and finance changes for the year at Rs 52.33 crore on standalone basis
from Rs 55.06 crore in the previous year.

Company in 2006 had issued 60,000 Zero Coupon Foreign Currency Convertible Bonds (bonds) due in
2010 of $ 1,000 each on the following terms: _

either convertible by the holders at any time on or after September 20, 2005 but prior to close of
business on August 1, 2010. Each bond will be converted into 83.12 fully paid up equity share with par
value of `5 per share at a fixed price of `522.036 per share at a fixed exchange rate conversion of
`43.3925 = $ 1; or

redeemable in whole but not in part at the option of the Company at any time on or after February 25,
2008 and on or prior to August 1, 2010 as per the terms and conditions of the bonds mentioned in the
Offering Circular;

_ redeemable on maturity date at 139.954% of its principal amount if not redeemed or converted
earlier.

The bonds have been since determined and crystallized and all except 2,118 bonds of $ 1,000 each have
been converted/repurchased. The balance bonds are due for repayment as per the terms of the Offering
Circular.
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Any appreciation of the Indian rupee against the US dollar will have a dampening effect on the
company's revenue. To protect its revenues, the company plans to take normal forward covers if
rupee appreciates.

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Ëiven its comfortable cash flow situation due to the deal signed with Pfizer, the company would not find
it difficult to redeem the FCCBs. We expect the FCCBs to be redeemed through a combination of internal
accruals and debt. But in case they are not redeemed then it would mean an equity dilution of 11.5%.

 
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May-2011 33.0 879.0 48.5 3.0
May-2011 106.2 1014.1 155.4 8.5
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