3i Infotech issues New Foreign Currency Convertible Bonds

In terms of the recommendation of the Board of Directors of 3i Infotech Ltd at its meeting held on October 21, 2011 and February 27, 2012, the FCCB Committee constituted by the Board of Directors of the Company has been authorised to decide on the appropriate mode for raising resources through the issue of securities in the domestic and international markets including approving the date of opening the issue; fixing the floor price, etc.

Accordingly, the FCCB Committee has approved an exchange offer for the outstanding foreign currency convertible bonds ("Existing Bonds") with new foreign currency convertible bonds to be listed on Singapore Exchange Securities Trading Limited and has decided to open the Issue on March 22, 2012. The floor price for the conversion of the Bonds, based on the pricing formula as prescribed by the Ministry of Finance, Government of India, pursuant to its circular dated November 27, 2008, amending the Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993, ("Notification"), is Rs. 16.33 per equity share of Rs. 10 each of the Company, and the relevant date for this purpose, in terms of the Notification, is March 22, 2012.

In addition to the above, the Company has issued notices to convene a meeting of the holders of the Existing Bonds on April 24, 2012. The meeting of the holders of the Bonds is for the purpose (i) of approving certain amendments, subject to the approval of Reserve Bank of India, to the terms and conditions of the Bonds including maturity and interest payable by the Company, the trust deeds and the agency agreements entered into for the Existing Bonds; and (ii) to waive all the existing defaults under the terms and conditions of the Existing Bonds.

The 3i Infotech Ltd stock was trading at Rs.16.50, down by Rs.0.35 or 2.08%. The stock hit an intraday high of Rs.17.55 and low of Rs.16.45.

The total traded quantity was 6.69 lakhs compared to 2 week average of 7.45 lakhs.

Source : Equity Bulls

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