Private equity major Apollo Global Management has converted its convertible debenture in pipe manufacturing firm Welspun Corp at a 60 per cent premium. Welspun Corp said that it will allot little over 35 million shares for one unsecured compulsorily convertible debenture of Rs 788.3 crore ($145 million) held by Granele, an affiliate of Apollo.
The debenture has been converted at Rs 225 per share. Shares of Welspun Corp closed at Rs 89.65, down by 0.88 per cent on Monday giving the company a market capitalisation of Rs 2,042.23 crore.
The conversion comes as Welspun had alloted the debenture, which was convertible in 18 months, on August 18, 2011. The debentures also had a coupon of 5 per cent.
The debentures were part of Apollo’s Rs 1,305 crore investment in Welspun Corp through convertible debentures and GDRs (Global Depository Receipts).
Welspun Corp reported a 19 per cent increase in revenues of Rs 7,462 crore for first nine months of FY13 but the company reported a loss of Rs 106 crore for the period (as compared to Rs 100 crore profit in 9MFY12).
(Edited by Prem Udayabhanu)