Rajesh Exports to issue FCCBs

Rajesh Exports Ltd has announced that the Board of Directors of the Company at its meeting held on February 09, 2007, has decided to issue and allot 1,500 zero coupon Unsecured Foreign Currency Convertible Bonds (FCCB) due 2012, of US$ 100,000 each for an aggregate amount of US$ 150,000,000 (subject to an over-allotment option of US$ 25,000,000 of Bonds) to be listed on the Singapore Stock Exchange Securities Trading Ltd (SGX-ST) with a conversion price of INR 575.00 and YTM of 8%, subject to the terms and conditions specified in the Offering Circular.

Silverdale Services Ltd, London, was the Sole Lead Manager for the offering, and UTI Bank Ltd was the Indian Advisor to the issuance.

In next 100 days, the Company would start the launch of 'Shubh' gold jewellery retail stores. It has already launched 30 'Laabh' gold jewellers chain stores in December 2006.

The Company also has 50:50 join venture with billion-dollar Fossi 1 Inc (Nasdaq: FOSL) with a portfolio of brands such as Fossi 1, Zodiac, Emporio Armani, and Burberry. The JV would launch 30 'Oyz terbay' retail stores in next quarter. Additionally, the JV would outsource gold jewellery from the Company for distribution by Fossi 1 network of over 23,000 sale-points across 90 countries.

These funds of over Rs 660 Crores raised will be used for acquisition of retailing chains abroad, and for augmentation of capacity for gold jewellery outsourcing business, for launching of diamond studded jewellery, and for strengthen of its retailing grip.

Rajesh Mehta, Executive Chairman of the Company said: "We are overwhelmed by the response of global investors who oversubscribed the issue many times. Savvy investors have appreciated the rapid margin expansion trajectory of the Company, and its global leadership in gold jewellery industry. This has enabled us to raise monies at significant premium to our current share price".

Source : Equity Bulls

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