Suzlon to reduce conversion price of FCCBs

Wind turbine manufacturer Suzlon Energy today said it will reduce the conversion price of its overseas bonds, worth $3 billion and $2 billion, it had issued.

The board has approved reduction in conversion price pursuant to the government's press note on February 15, which has allowed companies to reset the same for Foreign Currency Convertible Bonds (FCCBs), issued before November 27, 2008, to a level that is close to the market price, Suzlon said in a filing to Bombay Stock Exchange.

In April last year, the company had fixed conversion price of Rs 76.67 per share for the bonds at an exchange rate of Rs 49.81.

The $3 billion zero coupon convertible bond issued on June 11, 2007 is due in June 2012 and $2 billion zero coupon convertible bond, issued on October 10, 2007, is due in October 2012.

The board of directors has decided to conduct a postal ballot seeking the approval of shareholders for the reduction in FCCB conversion price.

Shares of Suzlon Energy were trading at Rs 68.85 on the BSE, up 0.44 per cent from previous close.