Jaiprakash Associates to raise US$ 1 Billion

Jaiprakash Associates Ltd has announced that the Board of Directors of the Company at its meeting held on July 14, 2007, had decided to raise an amount of upto US$ 1 Billion in two or more tranches out of which US$ 400 million (including Green-shoe option) was decided to be raised through issue of FCCBs.

Further the Company has informed that, the Company has sought the approval of the shareholders for the aforesaid proposal in its ensuing Annual General Meeting fixed for August 30, 2007.

In the meantime, subject to the requisite approvals including that of the shareholders, the FCCB Issue of US$ 300 million (with an Option granted to Barclays Capital to subscribe for upto an additional US$ 100 million), has been launched by Barclays Capital, the Sole Book Runner and Sole Lead Manager for the Offer.

In this regard, the Company has informed that, the FCCB Issue aggregating US$ 300 million (optional US$ 100 million to follow) has been fully subscribed on the following terms:

- Launching / Pricing: July 16, 2007

- Closing / Issue Date: September 11, 2007

- Maturity: September 12, 2012

- Coupon rate: 0% (zero percentage)

- Conversion Premium: 45% over the Reference Share Price (Reference Share Price Rs 854.33 per share (VWAP of shares on NSE, between opening trade and pricing on the launch date)

- YTM: 7.95% (calculated on a semi-annual basis)

- Initial Conversion Price: Rs 1238.78 per share

- Fixed conversion rate: US$ 1 = Rs 40.35

Source : Equity Bulls

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