Tulip Telecom Ltd, an enterprise data services provider, has raised $50 million (around Rs 280 crore) through foreign currency convertible bonds (FCCBs).
The new FCCBs are proposed to be listed on the Singapore Stock Exchange and the proceeds will be utilised towards redemption of the outstanding amount of the $144.69 million (including premium and applicable taxes) FCCBs raised in 2007 and due for redemption on August 26, 2012, according to a BSE filing.
VCCircle was the first to report this development in June this year.
“The funds raised from the new FCCBs will be utilised to refinance the existing FCCBs and enable Tulip to meet its obligation well in time. Our endeavour going forward is to strengthen our balance sheet by limiting capital expenditure and sweating existing assets to generate cash flows which will provide new thrust to business,” said HS Bedi, chairman & MD of Tulip Telecom.
Elara Capital Plc was the sole book runner and lead manager to Tulip Telecom on this funding.
Tulip Telecom offers network integration, VPN connectivity and managed services, spanning helpdesk, security, network, capacity planning and management & reporting. The company’s data network operates across 2,000-plus locations while it has over 5,000 employees and more than 2,500 customers globally. It also owns and operates the world’s third largest data centre in Bengaluru through a wholly owned subsidiary.
In May this year, Tulip Telecom sold its 13 per cent stake in Qualcomm’s India BWA business to India’s largest telecom operator Bharti Airtel Ltd and planned to utilise the funds for expanding and strengthening its balance sheet.
(Edited by Sanghamitra Mandal)