VCCircle

Computer maker Zenith Computers Ltd said it will meet on June 3 to consider raising up to Rs 1 billion through issue of convertible bonds. [Via The Economic Times]

Meanwhile, in another article in Business Standard, it says raising foreign curency convertile bonds will not be as attractive as before since the conversion premiums will not be good. It says "Indian companies may no longer enjoy the run of high conversion premiums. Some firms have even delayed the issues they had planned earlier".

Several Indian FCCB issues in 2005 and in the first four months of 2006 were aggressively priced, with conversion premiums as high as 50-70 per cent. The conversion premium in FCCB issues is normally in the range of 20-30 per cent. A lower conversion premium would mean a company going in for an FCCB issue now would have to issue more shares. [Via Business Standard]