ANALYSISBEYONDCONSENSUS

THENEWABCOFRESEARCH
FCCB:TheFinalCountdown

Our analysis for BSE 500 companies highlights that out of 28 companies
with FCCBs maturing by FY13, 25 will face FCCB redemption, translating
intoINR330bncashoutflow.SteepINRdepreciationhasresultedinhuge
MTMlosses,whichcoupledwithredemptionpremium(generallykeptoff
P&L)willleadtohighereffectivecostofborrowingthroughFCCBs.While
refinancing through domestic debt will trim PBT, companies resorting to
restructuringofFCCBwillfacehigherdilution.

FCCBsofINR330bnmaturingtillFY13
AsonOctober24,2011,28companiesintheBSE500hadaggregateFCCBoutstanding
of INR245bn maturing by FY13 (refer annexure I for details). We estimate that out of
thesecompanies,possibilityofconversionincaseof25companiesseemsremoteeven
after considering 20% CAGR to the current market price, redemption of which would
leadtocashoutflowofINR330bn.

Table1:FCCBredemptionpattern(INRbn)
Total
Likelyforredemption
FinancialYear
FCCB
Redemption
Redemption
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Outstanding
amount
Outstanding
amount
FY12
68.0 90.3 66.1 88.1
FY13
177.0 244.7 175.2 242.3
FY14
6.8 9.6 6.8 9.6
FY15
123.4 128.3 25.8 28.6
FY16
23.5 23.9 4.2 4.3
FY17
9.5 10.3 9.1 9.9
FY29
13.7 13.7

Total
421.8 520.7 287.1 382.8
Source:Edelweissresearch
Note:Redemptionamount=FCCBo/s,whereredemptionpremiumisnotavailable

CumulativeMTMlossofINR63.2bnwillfurtherstretchcashflows
WiththeINRdepreciatingsteeply(~17%)duringFY12,FCCBliabilitieshavecatapulted
further by INR33.3bn. Concerns loomlarge for companies where FCCBs are due for
redemption in the near future and hence the probability of MTM losses now being
realised is high. On an aggregate, unrealised cumulative MTM losses on outstanding
FCCBsasatNovember21,2011,stoodatINR63.2bn(referannexureIIIfordetails).

RefinancingofFCCBslikelytoimpactPBTby11.2%
Assuming refinancing cost at 12% p.a., on an aggregate, reported PBT of shortlisted
companieswillbelowerby11.2%.

ManojBahety,CFA
+912266233362
manoj.bahety@edelcap.com

SandeepGupta
+912240635474
sandeep.gupta@edelcap.com

NitinMangal
+912240635475
nitin.mangal@edelcap.com

AshishGupta
+912266233488
ashishs.gupta@edelcap.com

November22,2011
EdelweissResearchisalsoavailableonwww.edelresearch.com,
1
BloombergEDEL<GO>,ThomsonFirstCall,ReutersandFactset.

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AnalysisBeyondConsensus
FCCBrefinancinglikelytoresultinlowerPBT/higherequitydilution
Our analysis suggests that most of these shortlisted companies will either have to opt for
refinancing or a downward revision in conversion price.Assuming refinancing cost at 12%
p.a., on an aggregate, the reported PBT of shortlisted companies will be lower by 11.2%
(referAnnexureIIfordetails).ForcompanieswitharevisednetD/Eratioof~1.5xormore,
lowering of conversion price will lead to equity dilution to the extent of 28.9% (refer
annexureIVfordetails).

Refinancingthroughdomestic
debtwilllowerPBTby11.2%....

.Forcompanieswithnet
D/E>1.5x;reductioninconversion
pricewillleadtohigherdilutionby
29%

Chart1:ImpactonPBTonaccountofrefinancing
0

(%)

(18)
(36)
(54)

TataMotors

JSWSteel

JaiprakashAssociates

EraInfraEngineering

FinancialTechnologies

BharatForge

SintexIndustries

StridesArcolabs

RelianceCommunications

JaiprakashPower
Ventures

(72)

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Source:Company,BSE,Edelweissresearch

INRdepreciationafurtherdrag

Chart2:Currencymovement
55

(INR/USD)

50

DuringFY12,theINRhas
depreciatedby17%

45
40
35

Q2FY12

Q1FY12

Q4FY11

Q2FY11

Q1FY11

Q4FY10

Q3FY10

Q1FY10

Q4FY09

Q3FY09

Q1FY09

Q4FY08

Q3FY08

Q2FY08

Q1FY08

30

Source:RBI,Edelweissresearch

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FCCB:TheFinalCountdown
SteepINRdepreciationwillresultincumulativeMTMlossofINR63.2bnsinceissuancewhich
was till now being considered as notional. However, with most FCCBs maturing till FY13,
many of these MTM losses will lead to significantly higher cash outflow. During FY12, the
INRhasdepreciatedby17%,resultinginMTMlossofINR33.3bn.

SteepINRdepreciationresultedin
cumulativeMTMlossofINR63bn,
outofwhichINR33.3bnwas
duringcurrentyear

Chart3:ForexratesatwhichFCCBs(maturingtillFY13)wereraised
4648
3%

MTMlossescoupledwith
redemptionpremiumwillresultin
significantlyhighercostof
borrowingthroughFCCBs

4850
2%

3840
14%

4446
32%

4244
3%

4042
46%

Source:Edelweissresearch

60%ofFCCBsoutstandinghavebeenraisedintheINR/USDexchangeraterangebandof
lessthan42whichimpliescumulativeMTMforexlossof25%atcurrentexchangerate.
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MTMforexlossescoupledwithredemptionpremiumwillleadtosignificantcashoutflow,
resultinginhighereffectivecostofborrowingthroughFCCBs

FCCBsincomestatementfriendlyinstrumenttoraisefunds
ForeignfundshavebeenaconvenienttoolforIndiaInc.,toraisecheapmoneyforfinancing
growth.FCCBs,amongstthem,havebeenthebetteroptionduetolowereffectivecostof
borrowingcomparedtoplainvanilladebtbecauseoftheembeddedoptions.Theyofferan
option of conversion at a premium to the CMP (determined at the time of issue) within a
stipulated period. Hence, the company gets cheaper funds compared to normal debt and
higherpriceofequitycomparedtoCMPincasetheoptiongetsinthemoneyandthebonds
getconverted. Theseinstrumentshistorically arestructured atnegligiblecouponandthus
entailminimumcashflowsduringthetenure.However,intheeventofnonconversion,the
amount needs to be repaid along with a hefty redemption premium attached. FCCBs also
carryexchangeraterisklikeanyotherforeigncurrencydebt.Thus,borrowingthroughthem
ischeapercomparedtootherdebt;however,itrequiresappropriateliquidityandexchange
rateriskmanagement.

Theeffectivetruecosttothecompanywillbehigherofredemptionpremiumorlossonthe
short position on the embedded option which will get exercised in case the price
appreciatesmorethantheeffectiveconversionprice.
Foraninvestor,FCCBsofferguaranteedreturnswithfurthergainsfrompriceappreciation
bywayofequityparticipationabovetheeffectiveconversionprice.

FCCBscarryexchangerateand
redemptionrisk

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AnalysisBeyondConsensus
AccountingambiguitieshelpkeeptrueFCCBcostoffincomestatement
IndianaccountingnormscurrentlydonotmandateaparticularmannerforFCCBaccounting.
Presuming conversion, most corporates issuing FCCBs only charge the coupon associated
throughtheincomestatement,whereasredemptionpremiumskipstheincomestatement
and is either charged directly through reserves in the year of issue or over the period of
maturity. Few companies do not even charge the redemption premium through reserves,
butdisclosethesameaspartofcontingentliability.Thus,asignificantportionofYTMcost
representedbyredemptionpremiumisnotreportedintheincomestatement.

Moreover, the exchange loss on FCCBs is allowed to be capitalised to the carrying cost of
fixedassets.Thus,fromtheincomestatementpointofview,FCCBsprovidelowcostfunds
toIndiaInc.

CostofborrowingthroughFCCBs
hasbeenkeptoffP&L,resultingin
higherreportedprofitsforIndia
Inc.

MigrationtoIFRSdentsincomestatement
MigrationtoIndASwillresultin
redemptionpremiumflowing
throughP&Lhencelower
reportedprofits

PostmigrationtoIFRS,domesticcompanieswillhavetochargetheredemptionpremiumon
thedebtcomponentofFCCBsthroughtheincomestatementonaYTMbasisandhencethe
instrumentmayloseitscharmofbeingincomestatementfriendly.

Optionsavailablewithcompanieslikelytofaceredemption
In many cases, where the gap between the CMP and effective conversion price is still huge
despiterecovery,companieswillfinditdifficulttoreducetheconversionprice.Intheeventof
redemption,thesecompaniesarelikelytoexerciseoneoramixofoptionsmentionedbelow:

Repaymentthroughexistingcash&cashequivalents.

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Repaymentthroughoperatingcashflows.

Refinancingofdebt.

RestructuringofFCCBs.

Issueoffurtherequitytorepaydebt.

The choice of option will depend on the current net D/E position, net cash flows out of
operations,committedcapex,etc.WehavetabulatednetD/Eandaveragecashflowfrom
operationsforthepastthreeyearsforshortlistedcompanies(referannexure2).

Buyback:Anopportunitynotencashedtilldate
FCCBshavebecomeanightmareformanycorporatesbecauseofsteepfallinstockprices
andcurrencydepreciation.Hence,thegovernmentopenedawindowforbuybackofFCCBs
issued by corporates trading at steep discounts, thereby providing a lucrative exit
opportunitytocorporateIndiatillMach31,2010(recentlyextendedtillMarch2012).Onlya
few corporates were able to capitalise on the opportunity on account of low liquidity in
FCCBsanddifficultiesincomplyingwiththerequisiterequirement.

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FCCB:TheFinalCountdown
ChangingtrendsinFCCBs
Takingcuefromthepreviouscrisis,companies/investorshavealteredthetermsofFCCBs.
FCCBs issued now are at a high coupon rate in the 1.757.5% range and low redemption
premium ranging from 020% contrary to the past where coupon rates were in the 02%
range and redemption premium of 2540%. This will reduce the impact of heavy bullet
paymentoncompaniesintheeventofnonconversion.

EdelweissSecuritiesLimited

AnalysisBeyondConsensus

AnnexureI:BSE500companieswithFCCBsoutstandingason24thOct,2011

S.No. CompanyName

MaturityPeriod

IssueCurrency

1.1 3iInfotech
Apr12
EUR
1.2 3iInfotech
Jul12
USD
2
AmtekAuto@
Sep14
USD
3
ApolloHospital@
Oct16
USD
4.1 BharatForge
Apr12
USD
4.2 BharatForge
Apr13
USD
5
CoreProject
May15
USD
6
EducompSolutions
Jul12
USD
7
EraInfraEngineering
Jan12
USD
8.1 EssarOil@
Jun28
USD
8.2 EssarOil@
Sep28
USD
9
EverestKantoCylinders
Oct12
USD
10 FinancialTechnologies
Dec11
USD
Dec12
USD
11 FirstSourceSolutions
12 FortisHealthcare
May15
USD
13 Geodesic
Jan13
USD
14 GreatOffshore
Oct12
USD
15 GTLInfrastructure
Nov12
USD
16 HimadriChemicals@
Oct16
USD
17 HotelLeelaVentures
Apr12
USD
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18 ICSAIndia@
Mar12
19 JaiprakashPowerVentures
Feb15
USD
20.1 JaiprakashAssociates
Sep12
USD
20.2 JaiprakashAssociates
Mar13
EUR
21 JSWSteel
Jun12
USD
22 KaruturiGlobal
Oct12
USD
23 LarsenandTurbo@
Oct14
USD
24.1 MoserBaer
Jun12
USD
24.2 MoserBaer
Jun12
USD
25 OrchidChemicals
Feb12
USD
26 PidiliteIndustries
Dec12
USD
27.1 PrakashIndustries@
Oct14
USD
27.2 PrakashIndustries@
Mar15
USD
28 RajeshExports
Feb12
USD
29 REIAgro@
Nov14
USD
30.1 RelianceCommunications
Feb12
USD
31 RoltaIndia
Jun12
USD
32 SesaGoa
Oct14
USD
33 ShivVaniOil&GasExploration
Jul15
USD
34 SintexIndustries
Oct13
USD
35 SterliteIndustries@
Oct14
USD
36 StridesArcolab
Jun12
USD
37.1 Subex
Mar12
USD
37.2 Subex
Mar12
USD

IssueSize
FCCBO/S
ECP*
(mn)
(mn)
(INR)
30.0
20.0
215
100.0
66.4
233
165.0
4.3
148
15.0
7.5
303
40.0
40.0
861
39.9
39.9
1,080
75.0
67.4
272
80.0
78.5
832
75.0
40.1
236
115.0
115.0
138
147.0
147.0
153
35.0
35.0
387
100.0
90.5
3,476
275.0
191.4
129
100.0
100.0
172
125.0
113.5
416
42.0
40.0
802
300.0
228.3
74
7.0
7.0
14
100.0
41.6
106
2011-12-04 46.0
22:44:25 EST.
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21.0
NA
200.0
200.0
110
400.0
354.5
244
165.0
0.3
98
325.0
274.4
1,361
50.0
39.0
27
200.0
200.0
1,908
75.0
45.5
492
75.0
43.0
568
175.0
117.4
497
40.0
33.3
178
50.0
17.1
170
60.0
60.0
235
150.0
15.1
99
105.0
104.7
NA
1,000.0
925.3
860
150.0
96.7
514
500.0
216.8
347
80.0
80.0
537
225.0
225.0
319
500.0
500.0
NA
100.0
80.0
670
180.0
39.0
886
98.7
54.8
106

CAGRfor
conversion(%)
>500
>500
14.7
Inthemoney
>500
177.4
0.4
>500
>500
4.1
4.7
>500
>500
>500
12.3
>500
>500
>500
Inthemoney
>500
NA
42.8
492.6
45.8
422.5
>500
16.7
>500
>500
>500
9.9
71.1
76.5
Inthemoney
NA
>500
>500
27.9
30.2
204.7
NA
157.2
>500
>500

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FCCB:TheFinalCountdown

AnnexureI(contd.)

S.No. CompanyName
38.1
38.2
38.3
38.4
38.5
38.6
39.1
39.2
40
41.1
41.2
42
43

MaturityPeriod

IssueCurrency

Jun12
Oct12
Oct14
Oct14
Oct14
Apr16
Jun12
Oct14
Nov14
Sep12
Nov14
Aug12
Dec15

USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD

SuzlonEnergy
SuzlonEnergy
SuzlonEnergy
SuzlonEnergy
SuzlonEnergy
SuzlonEnergy
TataMotors
TataMotors
TataPower
TataSteel
TataSteel@
TulipTelecom
VideoconIndustries@

IssueSize
(mn)
300.0
200.0
90.0
35.6
20.8
175.0
490.0
375.0
300.0
875.0
546.9
150.0
200.0

FCCBO/S
(mn)
211.3
121.4
90.0
35.2
20.8
175.0
473.0
117.4
300.0
382.0
546.9
97.0
196.4

ECP*
(INR)
141
141
121
115
121
59
239
133
159
904
606
329
240

CAGRfor
conversion(%)
>500
>500
127.1
>500
>500
26.0
110.3
Inthemoney
18.8
202.9
17.1
281.9
9.2

Source:Companyannualreport,BSE,RBI,Capitaline,Edelweissresearch
Notes:
*Conversionpriceisadjustedforsplit,bonusandrightissue
@ConversionpriceisusedinsteadofECP,asredemptionpremiumwasnotavailable
ECP(effectiveconversionprice)=conversionprice+redemptionpremium
CMPasonNovember21,2011

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AnalysisBeyondConsensus

AnnexureII:CompanieslikelytofaceFCCBredemption

(INRmn)
Marketcap
(INRbn)
3.6
62.8
16.7
27.1
4.4
27.1
3.7
4.2
3.7
8.1
12.7
90.9
129.2
126.9
3.3
3.5
10.8
4.9
144.5
9.1
148.8
9.6
25.2
23.8
2.3
37.9
476.7
364.2
18.9

S.No Companyname

FCCBlikely
CFOpost
Net Revised
Impacton
redeemableamt^
interest#
D/E# netD/E
PBT(%)
1
3iInfotech
6,822 1,894 1.7 1.9 31.3
2
BharatForge
6,230 1,921 0.8 0.9 17.1
3
EducompSolutions
5,775 1,927 0.5 0.6 16.9
4
EraInfraEngineering
3,115 (4,850) 1.6 1.7 11.3
5
EverestKantoCylinders
2,606 1,449 0.4 0.6 41.9
6
FinancialTechnologies
6,944 (3,084) 0.2 0.4 14.8
7
FirstSourceSolutions
13,910 2,191 0.8 1.1 95.2
8
Geodesic
8,147 5,380 (0.6) (0.4) 35.3
9
GreatOffshore
2,960 3,307 2.6 2.7 77.0
1
10 GTLInfrastructure
16,715 (1,976) 2.1 2.5
NM
11 HotelLeelaVentures
3,180 145 1.8 1.8 66.3
12 JaiprakashPowerVentures
13,315 1,426 2.2 2.2 58.6
13 JaiprakashAssociates
27,325 (372) 3.5 3.5 10.6
14 JSWSteel
20,433 18,296 0.9 0.9 10.0
15 KaruturiGlobal
2,852 1,213 0.2 0.3 21.9
16 MoserBaer
6,330 (346) 1.8 1.9 9.0
17 OrchidChemicals
8,742 1,645 1.5 1.9 61.1
18 PrakashIndustries
4,020 1,431 0.4 0.4 17.6
19 RelianceCommunications
62,725 10,722 0.8 0.8 49.6
3
20 RoltaIndia
7,028 6,290 0.7 0.8 18.2
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21 SesaGoa
11,305 34,752 0.0 0.0 2.4
22 ShivVaniOil&GasExploration
4,348 (1,748) 1.9 1.9 6.8
23 SintexIndustries
15,168 7,898 0.7 1.0 29.9
2
24 StridesArcolabs
6,051 2,022 1.3 1.4 39.1
25 Subex
6,533 20 2.6 3.7 94.2
26 SuzlonEnergy
45,837 819 1.4 1.8
NM
27 TataMotors
32,513 87,711 1.1 1.1 3.7
28 TataSteel
24,569 33,263 1.4 1.3 2.4
29
TulipTelecom
7,309 2,643 1.3 1.5 21.6
Source:Companyannualreport,BSE,RBI,Capitaline,Edelweissresearch
Note:
1:FinancialendingMarch,2010
2FinancialendingDecember,2010
3FinancialendingJune,2011
^IncludesissueswhereECPishigherthanCMPevenafterconsidering20%CAGR
#Asperlastannualreport
MarketcapitalisationasonNovember21,2011
Revisednetdebt/equityiscalculatedafterconsideringthefollowing:
1.FCCBconvertedtillOctober24,2011
2.FCCBlikelytoconvertassuminga20%CAGRgrowthinCMPistreatedasequityandthebalance
Includingredemptionpremiumistreatedasdebt
3.ForeigncurrencymovementtillNovember21,2011

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FCCB:TheFinalCountdown

AnnexureIII:MTMlossonFCCBsoutstanding

Cumulative
S.No. CompanyName
MaturityPeriod
IssueCurrency FCCBO/S(mn)
MTMloss(INRmn)
1.1
3iInfotech
Apr12
EUR
20.0
249.8
1.2
3iInfotech
Jul12
USD
66.4
752.3
2
AmtekAuto
Sep14
USD
4.3
15.0
3
ApolloHospital
Oct16
USD
7.5
52.1
4.1
BharatForge
Apr12
USD
40.0
241.8
4.2
BharatForge
Apr13
USD
39.9
241.2
5
CoreProject
May15
USD
67.4
519.9
6
EducompSolutions
Jul12
USD
78.5
403.9
7
EraInfraEngineering
Jan12
USD
40.1
309.4
8.1
EssarOil
Jun28
USD
115.0
637.7
8.2
EssarOil
Sep28
USD
147.0
778.4
9
EverestKantoCylinders
Oct12
USD
35.0
430.7
10
FinancialTechnologies
Dec11
USD
90.5
676.1
11
FirstSourceSolutions
Dec12
USD
191.4
2,464.3
12
FortisHealthcare
May15
USD
100.0
718.5
13
Geodesic
Jan13
USD
113.5
1,477.2
14
GreatOffshore
Oct12
USD
40.0
493.0
15
GTLInfrastructure
Nov12
USD
228.3
2,932.5
16
HimadriChemicals
Oct16
USD
7.0
38.3
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17
HotelLeelaVentures
Apr12
USD
41.6
424.3
18
ICSAIndia
Mar12
USD
21.0
NA
19
JaiprakashPowerVentures
Feb15
USD
200.0
1,201.0
20.1 JaiprakashAssociates
Sep12
USD
354.5
4,181.0
20.2 JaiprakashAssociates
Mar13
EUR
0.3
4.2
21
JSWSteel
Jun12
USD
274.4
3,255.8
22
KaruturiGlobal
Oct12
USD
39.0
484.2
23
LarsenandTurbo
Oct14
USD
200.0
1,065.0
24.1 MoserBaer
Jun12
USD
45.5
540.3
24.2 MoserBaer
Jun12
USD
43.0
510.6
25
OrchidChemicals
Feb12
USD
117.4
964.6
26
PidiliteIndustries
Dec12
USD
33.3
425.4
27.1 PrakashIndustries
Oct14
USD
17.1
95.2
27.2 PrakashIndustries
Mar15
USD
60.0
468.5
28
RajeshExports
Feb12
USD
15.1
121.6
29
REIAgro
Nov14
USD
104.7
NA
30.1 RelianceCommunications
Feb12
USD
925.3
7,434.8
31
RoltaIndia
Jun12
USD
96.7
1,101.8
32
SesaGoa
Oct14
USD
216.8
898.6
33
ShivVaniOil&GasExploration
Jul15
USD
80.0
405.2
34
SintexIndustries
Oct13
USD
225.0
2,613.4
35
SterliteIndustries
Oct14
USD
500.0
NA
36
StridesArcolab
Jun12
USD
80.0
915.6

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AnalysisBeyondConsensus

AnnexureIII(contd.)

S.No.
37.1
37.2
38.1
38.2
38.3
38.4
38.5
38.6
39.1
39.2
40
41.1
41.2
42
43

CompanyName
Subex
Subex
SuzlonEnergy
SuzlonEnergy
SuzlonEnergy
SuzlonEnergy
SuzlonEnergy
SuzlonEnergy
TataMotors
TataMotors
TataPower
TataSteel
TataSteel
TulipTelecom
VideoconIndustries

MaturityPeriod
Mar12
Mar12
Jun12
Oct12
Oct14
Oct14
Oct14
Apr16
Jun12
Oct14
Nov14
Sep12
Nov14
Aug12
Dec15

IssueCurrency
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD

FCCBO/S(mn)
39.0
54.8
211.3
121.4
90.0
35.2
20.8
175.0
473.0
117.4
300.0
382.0
546.9
97.0
196.4

Cumulative
MTMloss(INRmn)
314.5
217.8
1,594.3
915.7
355.3
82.0
48.5
1,322.6
5,465.5
688.6
1,600.5
4,543.9
3,164.3
1,086.9
1,353.2

Source:Companyannualreport,BSE,RBI,Capitaline,Edelweissresearch
Note:FCCBoutstandingasonOctober24,2011
CumulativeMTMlosses(sinceissuance)calculatedatexchangerateofINR52.15/USDasat
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FCCB:TheFinalCountdown

AnnexureIV:LikelydilutionimpactofFCCBrestructuring
Equitydilutionon
conversionofFCCB@CMP
S.No. CompanyName
1
2
3
4
5
6
7
8
9
10
11
12
13
14

3iInfotech
EraInfraEngineering
GreatOffshore
HotelLeelaVentures
JaiprakashPowerVentures
JaiprakashAssociates
MoserBaer
OrchidChemicals
ShivVaniOil&GasExploration
StridesArcolabs
Subex
SuzlonEnergy
TulipTelecom
GTLInfrastructure

Likelyredeemable
amount^(INRmn)
6,822
3,115
2,960
3,180
13,315
27,325
6,330
8,742
4,348
6,051
6,533
45,837
7,309
16,715

Total
(%)
65.6
10.3
44.6
20.0
12.8
17.4
64.4
44.8
31.2
20.3
10.1
54.7
28.0
67.3

Promoterholding(%)

Additional
Asat
(%) Q2FY12
54.6 20.3
4.5 58.9
37.5 49.7
14.1 56.5
8.9 76.5
13.5 46.9
59.2 16.3
27.4 29.8
17.6 54.7
9.5 28.4
8.2 54.8
37.0 54.8
17.3 69.9
52.3 39.9

Postconversion
ofFCCB@CMP
7.0
52.8
27.6
45.2
66.7
38.7
5.8
16.5
37.6
22.6
49.3
24.9
50.3
13.0

Source:Companyannualreport,BSE,RBI,Capitaline,Edelweissresearch
Note:
ForcalculationofequitydilutionwehaveassumedthatconversionwillhappenatCMPafter
loadingredemptionpremiumtothepar
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valueofFCCBsconvertedatcurrentexchangerate
^IncludesissueswhereECPishigherthanCMPevenafterconsidering20%CAGR

Listofexclusion

CompanyName
ElectrosteelCastings
GitanjaliGems
MonnetIspat
NavaBharatVentures
VideoconIndustries
Wockhardt

Source:Companyannualreport,BSE,RBI,Capitaline,Edelweissresearch
Note:1.FCCBmaturedonJuly,2011isexcludedforouranalysis

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AnalysisBeyondConsensus
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