3i Infotech prices USD 100 mn FCCB offering to fund expansion plans

3i Infotech Ltd on June 26, 2007, has announced that it had successfully priced a Zero coupon Foreign Currency Convertible Bonds (FCCBs) offering of USD 100 million convertible over a five year period. The FCCBs are proposed to be listed on the Singapore Stock Exchange. The issue of the FCCBs is subject to inter alia obtaining shareholder approval for the proposed increase in borrowing powers.

The FCCBs will be convertible at a conversion price of Rs 331.87 per equity share of the Company, which is at a premium of 10% to the Company’s closing equity share price on the National Stock Exchange of India Ltd as on June 25, 2007. The FCCBs will be redeemable on the expiry of five years at a yield to maturity of 7.05%. Lehman Brothers International (Europe) is the sole book-runner for the transaction.

Commenting on the development, Mr. V Srinivasan, Managing Director and CEO of the Company said, "3i Infotech has been on a fast track growth mode looking at achieving leadership position in the BFSI solutions space. We have robust plans for all our business offerings and the aggregate net proceeds of this FCCB offering will be used in order to further fuel our expansion plans in the coming years."

The stock was trading at Rs.304, up by Rs.2.50 or 0.83%. The stock hit an intraday high of Rs.307 and low of Rs.302.85. The total traded quantity was 32669 compared to 2 week average of 246086.

Source : Equity Bulls

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