Agro Seed Firm Advanta India Raises $50M Through FCCB Issue


  • 30 Jun 2011

Agro seed company Advanta India Ltd has closed $50 million Foreign Currency Convertible Bonds(FCCB) issue. The money raised through the overseas convertible bond issue would be primarily invested in Advanta’s international subsidiaries and might also be utilised to meet any other requirement, the company said on Thursday.

The FCCBs carry a coupon rate of 3.5 per cent plus three months US$ Libor, having a maturity of 5 years and 1 day and convertible into equity shares of face value of Rs 10 each, at an initial conversion price of Rs 282.84 per share.

Credit Suisse (Singapore) Ltd was the sole book-runner of the issue.


The conversion is at a 10 per cent premium over the floor price, Advanta disclosed to the stock exchanges.

Advanta scrip closed at Rs 255, up 1.35 per cent at BSE on Thursday. 

Advanta India Ltd is an associate company of agro chemicals major United Phosphorus Ltd. It is a leading breeder, producer and conditioner of hybrid seeds products including grain sorghum, forage sorghum, millet and sunflower.


The firm had struck a string of acquisitions in India and abroad over the last four years. In the past it has acquired Crosbyton Seed Company for an undisclosed sum, its second investment in the US sorghum seeds sector, following the 2008 acquisition of Garrison & Townsend Seed Company of Hereford, Texas. Other acquisitions in the vegetables space include Golden Seeds Pvt Ltd India and Unicorn Seeds Ltd, besides the sunflower seed business of Limagrain (USA).

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