Auto component-maker Amtek India Ltd has raised $70 million (Rs 390 crore) through foreign currency convertible bonds (FCCBs), as per a BSE statement.
“The FCCBs, which have a maturity of five years, are convertible at the initial conversion price of Rs 103.005 per share,” the company stated. The bonds which are expected to be issued around September 20, will carry a semi-annually payable coupon of 2.50 per cent, the company said.
In March, the automobile company had raised $130M through FCCBs. While the previous bond issue also had the same conversion price, it carried a much higher coupon rate of 6 per cent, payable semi-annually.
While Standard Chartered Bank was the sole book running lead manager of the previous issue, DBS Bank was the sole global coordinator and book runner for the latest issue. The bonds would be listed on the Singapore Stock Exchange (like the previous bond issue early this year).
Amtek India shares were quoting at Rs 97.90 a unit at 2.43 PM, down 0.80 per cent on the BSE in a strong Mumbai market on Friday. This makes the bond’s conversion price at a marginal premium to the current price.
Amtek India is majority-owned by public-listed group flagship Amtek Auto, which, in turn, is a firm backed by PE investors like Warburg Pincus and ChrysCapital. Both the PE firms earlier invested in Amtek India but exited the firm following a group restructuring when the promoters, led by Arvind Dham, sold their stake in Amtek India to Amtek Auto in a consolidation exercise.
The Amtek Auto Group is an integrated component manufacturer with 43 manufacturing facilities located in India (39) and Europe (4). In 2006, Amtek Auto had raised $250 million through FCCBs and in January this year, the company extinguished the remaining part (worth $147 million) of the bonds by redeeming them.
(Edited by Prem Udayabhanu)
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