Nava Bharat Ventures Limited, with interests in power, ferro alloys, mining and sugar, exercised the ‘issuer’s conversion option’ to convert the outstanding foreign currency convertible bonds (FCCBs) into equity shares of the company. The company had issued the FCCB in October 2006 worth 6 billion yen and had 3.52 billion yen (equivalent to $42.44 million or Rs 192.50 crore) outstanding FCCBs.
These would be converted into 14.08 million equity shares at the prevailing conversion price of Rs 121.82 per share on the effective date being Feb 28. FCCBs worth 2.48 billion yen had already been converted earlier.
The FCCBs had a zero coupon rate and carried a fixed yield-to-maturity of 4.67 per cent per annum, payable on redemption or conversion. Further, the company had a fixed exchange rate of 0.3976 yen per rupee for this conversion irrespective of the current exchange parity. Post conversion, the equity of the company is set to go up to 90.44 million equity shares of Rs 2 each aggregating Rs 18.09 crore.