Sintex Ind extend falls post FCCB issue

The net proceeds from the offering of the bonds will be used to repurchase or repay the outstanding FCCBs issued in 2008

Sintex Industries is trading lower by 4% at Rs 61.50, extending its Friday’s 5% fall, after the plastic products maker announced the launching of up to $150 million step down Foreign Currency Convertible Bonds (FCCBs) which would be due in 2017.

Meanwhile, the board has decided to close the said issue for an aggregate amount of $140 million, with a fixed rate of exchange of Rs 54.959 equal to $ 1.00 (as on November 15, 2012).

"The company's board at its meeting held on Friday last launched closed the step down FCCBs due on November 2017," Sintex said in a notice to the Bombay Stock Exchange ( BSE).

The initial conversion price of the bonds has been set at Rs 75.60 per share and the yield to maturity on the bond is 5.37%.

The net proceeds from the offering of the bonds will be used to repurchase or repay the outstanding principal, accrued and unpaid interest on the FCCBs issued in 2008, the company said.

The stock opened at Rs 64.15 and hit a low of Rs 61.20 on the BSE. A combined 1.36 million shares have changed hands on the counter so far on both the exchanges.