Prakash Industries Ltd to launch exchange offer for FCCBs

The Board of Directors of Prakash Industries Ltd at its meeting held on June 24, 2015 has approved the launch of the exchange offer on June 29, 2015, involving exchange of Existing Bonds on the terms and conditions more specifically contained in the Exchange Offer Memorandum, for (a) U.S. dollar denominated 5.35 per cent unsecured FCCBs due 2020 ("New Bonds"), and (b) part cash redemption ("Exchange Offer")

The execution of the offer is subject to having obtained all necessary approvals and compliance with all applicable laws in relation to the Restructuring Plan (including, without limitation, obtaining the RBI approval and shareholder approval in the Extraordinary General Meeting, wherever required).

The conversion price for the new Bonds is proposed at Rs.60 per equity share. The relevant date to determine "Floor price' for the New Bonds, under prescribed pricing formula ("Relevant Date") is June 24, 2015.

The company has appointed Elara Capital (Asia) Pte. Ltd, Singapore as the dealer Manager for the proposed issue.

Shares of PRAKASH INDUSTRIES LTD. was last trading in BSE at Rs.33.6 as compared to the previous close of Rs. 34. The total number of shares traded during the day was 698351 in over 3435 trades.

The stock hit an intraday high of Rs. 36.4 and intraday low of 33.3. The net turnover during the day was Rs. 24496770.

Source : Equity Bulls

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