Strides Arcolab redeems $34 Million FCCBs due 2010

Strides Arcolab today announced that the Company has redeemed USD 34 Million FCCBs, on due date. The Company had originally raised USD 40 Million FCCBs in the year 2005 and has bought back USD 6 Million during the year 2009. The total payout for redeeming the bonds was USD 46.50 Million as the Bonds were redeemable at a premium of 136.78%.

Post redemption of these FCCBs, the Company now has outstanding FCCBs worth USD 80 Million FCCBs out of the USD 100 Million raised in the year 2007. The 80 USD Million FCCB has an initial conversion price of Rs.461.553 per share, and if not converted before June 27, 2012, are redeemable at a premium of 145.058%.

Commenting on the development, Mr. T.S. Rangan, Group CFO stated "The Company has diligently planned the redemption thereby reiterating its commitment in securing the interest of the Investors. We take this opportunity to thank the bond holders for the confidence reposed on us".

The stock was trading at Rs.363, up by Rs.21.45 or 6.28%. The stock hit an intraday high of Rs.364.90 and low of Rs.341.

The total traded quantity was 374019 compared to 2 week average of 97456.

Source : Equity Bulls

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