Aban gets nod to raise $400 mn

Oil rig company Aban Offshore Ltd has received shareholders' nod to raise around $400 million (Rs 1,840 crore) by way of foreign currency convertible bonds, global depositary receipts (GDRs), American depository receipts/shares and others. It also got nod to raise around Rs 2,500 crore through qualified institutional buyers (QIBs).

The company is planning to use the money mainly to repay the debt, which is around Rs 15,000 crore, said Aban managing director Reji Abraham on the sidelines of the annual general meeting.

“This is just an enabling resolution, we will raise the money at the appropriate time,” said Abraham.

The company had earlier raised around Rs 698 crore through QIP. “The company has been able to get the co-operation and approval of its lenders for refinancing of its debts,” said vice chairman P Murari.

Abraham said the company was likely to report 10-12 per cent growth in the top line for the current fiscal. During the year ended March 31, 2010, it registered revenues of Rs 3,380 crore as compared with Rs 3,454 crore.