New Delhi: Mahindra & Mahindra (M&M) said today that it has advanced the period for redeeming the outstanding Foreign Currency Convertible Bonds (FCCBs) worth $141.2 million to this year from the earlier 14 April 2011, reports PTI.
"M&M today issued a notice for early redemption of its outstanding FCCBs of $141.2 million and setting the last date for conversion of FCCBs into shares/GDRs to 29 October 2010, and the balance outstanding FCCBs after conversion, if any, will be redeemed on 8 November 2010," the company informed the Bombay Stock Exchange (BSE).
The utility vehicle manufacturer had issued FCCBs worth $200 million in April 2006, each with a face value of $1,00,000. Out of the total issue, the company bought back bonds worth $10.5 million, while FCCBs worth $48.3 were converted into shares/GDRs during the last three months.
"In the last 12 weeks, the bonds have started converting, as they are in the money by a huge margin. We trust, that given the current market price, the bond holders would find it valuable to convert their holding into M&M shares/GDRs," executive director and group CFO Bharat Doshi said.
M&M had decided the conversion price at Rs461.02 a share with a fixed exchange rate of Rs44.42 a dollar. The company has the right to call the bond after two years if the share price is more than 120 per cent of the conversion price for a consecutive 30 trading days. "The company's share price has been trading consistently higher than 120 per cent for the last 12 weeks and currently the share price of the company is Rs725.70 and the $/Rs is 44.30," the company said in the statement to the BSE.
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