Rolta, JSW Steel up on bond repayment
Strides Arcolab also rose for the second day after it repaid $80 mn outstanding FCCBs
Shares in Rolta India and JSW Steel rose after companies' said that they have redeemed foreign currency convertible bonds worth $134.7 million and $274.4 million respectively.
Strides Arcolab also rose for the second day after it repaid $80 million outstanding FCCBs. Strides was up 1.2 percent, after gaining 2.7 percent on Wednesday. Traders say there has been concern about companies' capacity to repay FCCBs, primarily due to a sharp fall in the rupee.
A slumping rupee is expected to cause big market to market losses to unhedged FCCBs, increase the cost of borrowing and even lower the probability of conversion.
Edelweiss estimates $6 billion in FCCBs are outstanding as of May 28, 2012, of which it estimates $3.2 billion will be redeemed in the current fiscal year.
Shares in Rolta rose 4.6 percent while JSW Steel added 0.7 percent.