Videocon Industries launches USD 200 million Convertible Bonds

Videocon Industries Ltd has announced that the Company on December 02, 2010, has launched an issue of USD 200 million direct, unsubordinated, unconditional and (subject to the conditions of the negative pledge) unsecured convertible bonds due 2015 ("Bonds") convertible into ordinary equity shares of the Company. The Company has decided to issue the Bonds inter alia, for (i) capital expenditure on new and existing projects, (ii) overseas direct investment in joint ventures and wholly owned subsidiaries subject to the existing FEMA guidelines, and (iii) any other use as may be permitted under applicable law or regulations from time to time. The Bonds will be convertible into ordinary shares of the Company quoted in Indian Rupees.

Application will be made for the Bonds to be listed on the Singapore Exchange Securities Trading Ltd and for in-principle approval for the shares to be Issued upon conversion of the Bonds to be listed on the NSE and BSE. The Issuer has already obtained the approval of its shareholders by a special resolution passed on June 22, 2010 for the Issue of the Bonds and for issue of the Shares to be issued upon conversion of the Bonds.

Credit Suisse and Standard Chartered are the Joint Bookrunners for the offering.

The stock closed the day at Rs.204, down by Rs.28.75 or 12.35%. The stock hit an intraday high of Rs.234 and low of Rs.197.85.

The total traded quantity was 18.25 lakhs compared to 2 week average of 4.23 lakhs.

Source : Equity Bulls

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