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JSW Steel to issue FCCB worth US$ 325 million
Wednesday, May 30, 2007
JSW Steel has decided to issue FCCB worth US$ 325 million. The conversion price works out at Rs 953.40 per share which represents a 50% premium over the closing price of Rs 635.60 on the NSE on May 29. The tenure is 5 years 1 day and the yield to maturity at 7.25% p.a calculated on a semi annual basis payable on maturity, if not converted in to shares during the tenure of the Bond. The company has proposed to list this at Singapore Stock Exchange. The closing date is June 27.
ABN AMRO Rothschild and Citigroup are the joint book runners. At the conversion price, it would lead to an equity dilution of almost 7.8%. The company has plans to increase capacity from 3.8 mtpa to 10 mtpa by Sep 2010. It has also acquired a service center in UK with capacity of 0.15 mtpa.
The company is scouting for 3 more service centres in Western Europe. It is already in process of increasing capacity to 6.8 mtpa. Expansion to 10 mtpa is to continue in tandem with existing projects. The company has announced a capex plan of Rs 7,000 crore for expansion. Rs 2,000 crore are to be financed primarily by internal accruals and Rs 5,000 crore to be financed via debt, quasi-debt instruments.
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Investment in equity shares has its own risks. Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that we consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it.& take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations given in this blog.
