Rolta repurchases US$ 15.00 Mn FCCBs taking the total buyback to US $ 53.31 Mn

Rolta India Ltd is pleased to announce that it has further repurchased US $ 15.0 Million of the outstanding Foreign Currency Convertible Bonds's (FCCB's), of the original issue of Zero Coupon FCCBs of US $ 150 Million due in 2012. The Bonds of the accreted value of US $ 17.8 Million have been repurchased at a discount of 15.25% resulting in a gain of US $ 2.80 Million (approx Rs. 13.00 crores).

In June 2009, the company had, through a tender offer, repurchased FCCB's of the accreted value of US $ 43.67 million at a gross repurchase value of US $ Rs 32.75 million resulting in a gain of US$ 10.92 million (Rs 53.50 crores). The aggregate accreted value of all repurchase of FCCB's till date is US $ 61.47 million (Face Value $ 53.31 million) and total amount paid aggregates US$ 47.75 million resulting in a gain of US $ 13.72 million (approx Rs 66.50 crores) giving an average discount of 22.3% to the accreted value on all buybacks. This gain has been appropriated into P&L and Reserves in the financial statements of the company.

The Company has diligently worked to effect these repurchase transactions to not only take advantage of the window of opportunity provided by government regulations, but also to adopt procedures that kept the interest of investors in focus. With this the company has been able to repurchase 35.5% of the initial issue of Bonds and the aggregate principal value of the Bonds remaining outstanding will be US $ 96.69 Million following completion of this repurchase which are due for redemption in June 2012.

Source : Equity Bulls

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