Gremach successfully placed foreign currency convertible bonds

Gremach Infrastructure Equipments & Projects Ltd on December 11, 2007, has announced that it has successfully placed an offering of USD 50 million 1% foreign currency convertible bonds.

The bonds have a tenor of five years and one day and are convertible into equity shares at a price of Rs 376.36 per share (at a premium of 15% over the VWAP of the shares on the BSE from October 29, 2007 to December 10, 2007).

The Company intends to use the net proceeds raised for its foray in to Oil Rig Business as may be permitted by Indian law and RBI regulation.

Mr. Rishi Raj Agarwal, Managing Director of the Company commented: "The successful launch of the FCCB is reflection of international investors' confidence in the growth prospects and management of the Company. The funds raised by the FCCB will provide an impetus for organic opportunities available to the Company in Oil rig business globally".

The FCCBs issue was oversubscribed by 60%. Bonds are expected to be listed on the Singapore Stock Exchange and closing is likely to take place on January 21, 2008 subject to requisite approvals having being obtained.

Standard Chartered Bank acted as Sole book runner and Atherstone Capital Markets Ltd acted as Financial Advisor for the FCCB.

Source : Equity Bulls

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