Welspun Gujarat successfully priced US $130 Million FCCB

Mumbai - September 25, 2009: Welspun Gujarat Stahl Rohren Ltd., (Welspun), the flagship company of the $2000 million Welspun Group and the 2nd largest line pipe manufacturer in terms of capacity (Source: Financial Times, 2008) launched and successfully priced last night, Foreign Currency Convertible Bonds ("FCCB") offering for an amount of US$ 130 million, with an upsize option of US$ 20 million. The funds will be utilized to invest for capital expenditure, investments in growth opportunities and other usage in accordance with applicable statutory and/or regulatory requirements.

The FCCBs are expected to be listed on the Singapore Exchange. JP Morgan has acted as the sole book-runner to the transaction.

Speaking on the occasion, Mr. B.K. Goenka, Chairman and Managing Director of Welspun said, "This new FCCB issuance, one of the first issuance int he Indian market after almost 18 months, depicts the faith investors have reposed in the prospects of our company. I take this opportunity to thank all the investors and this successful placement strengthen my endeavor to make this company one of the most respected pipe companies in the world".

The stock was trading at Rs.256.25, down by Rs.9.80 or 3.68%. The stock hit an intraday high of Rs.265 and low of Rs.253.

The total traded quantity was 501221 compared to 2 week average of 1178569.

Source : Equity Bulls

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