Websol Energy System up 20% on RBI nod for restructuring FCCBs

The stock up 20% at Rs 42.15 after the company said the RBI approved the restructuring of outstanding FCCBs subject to certain conditions.

Websol Energy System has locked in upper circuit of 20% at Rs 42.15 on the BSE on back of heavy volumes after the company announced that the Reserve Bank of India (RBI) approved the restructuring of outstanding foreign currency convertible bonds (FCCBs) subject to certain conditions.

“The Company had applied to RBI for restructuring of outstanding FCCBs. The same has been approved by RBI subject to certain conditions,” Websol Energy System said in a regulatory filing.

The restructuring is as per the terms approved by the shareholders of the company in the EGM held on May 26, 2016, it added.

At EGM, the shareholders approved the principle value of outstanding FCCBs to be settled at US$ 12 million from US$ 16.8 million earlier and complete waiver of the accrued interest including penal interest amounting to approximately $ 11.68 million arising out of default situation of FCCBs.

The conversion price has been revised to Rs 62 per share, being approximately 17% over the regulatory floor price of Rs 52.86 per share. The company will redeemed the bonds on May 1, 2021 in cash at 128% of the principal value of the bonds at their accreted principle amount based on a yield of 5% p.a. compounded semi-annually, calculated on the basis of the number of days elapsed and 360-day year, the company said.

Till 11:24 am, a combined 747,604 shares changed hands against an average 50,000 shares that were traded daily in past two weeks. There were pending buy orders for 114,342 shares on the BSE and NSE.