Easun Reyrolle repurchases $31 million worth FCCBs

During December 2007, Easun Reyrolle Limited issued Foreign Currency Convertible Bonds (FCCBs) for a face value of USD 35 Million. These bonds carried a zero coupon rate with a yield to maturity rate of 7.35% per annum payable at redemption. The Company has bought back FCCBs of the face value of USD 31 Million in line with the guidelines issued by RBI. The Company effected the buy back at a discount of 50.10% to the accreted value of bond, (face value of Bonds including accrued interest up to the date of purchase).

In December 2007, Easun Reyrolle Limited raised a total of USD 57.5 Million through a combination of GDRs (USD 22.5 Million) and FCCBs. The Company has since acquired two subsidiaries - one in Canada and one in Germany - to strengthen its technological base and provided market access in Americas and Europe. It has also established an international marketing subsidiary in Sharjah with the objective of gaining extended market access in targeted geographies.

The Company has made significant investments in India and in further strengthening these subsidiaries, the returns from which are expected to be seen from next financial year. Apart from the outstanding FCCBs of USD 4 Million, Easun Reyrolle Limited has no long term debt. This opportunity to buy back most of the outstanding FCCBs at a good discount provides the Company with even stronger base to pursue its future growth and investments.

The stock closed the day at Rs.93.60, down by Rs.0.05 or 0.05%. The stock hit an intraday high of Rs.96 and low of Rs.92.60.

The total traded quantity was 40977 compared to 2 week average of 92359.

Source : Equity Bulls

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