3i Infotech jumps after announcing restructuring of FCCBs

3i Infotech rose 5.09% to Rs 5.37 at 11:11 IST on BSE after the company said that a special committee of the board has approved issuing new foreign currency convertible bonds in exchange for two separate sets of existing FCCBs.

Meanwhile, the BSE Sensex was up 11.67 points, or 0.04%, to 27,178.54.

On BSE, so far 12.37 lakh shares were traded in the counter, compared with average daily volume of 4.97 lakh shares in the past one quarter. The stock hit a high of Rs 5.47 and a low of Rs 5.12 so far during the day. The stock hit a 52-week high of Rs 6.09 on 8 December 2015. The stock hit a 52-week low of Rs 2.72 on 20 August 2015. The stock had outperformed the market over the past 30 days till 5 July 2016, rising 34.83% compared with 1.45% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 19.11% as against Sensex's 9.1% rise.

The small-cap company has an equity capital of Rs 640.80 crore. Face value per share is Rs 10.

3i Infotech announced that a special committee of the board of directors entrusted with the task of restructuring the company's foreign currency convertible bonds (FBBCs) approved issuing new FCCBs of up to $52 million in exchange for the existing $125.35 million 5% FCCBs due 2017 and the $2.43 million 4.75% FCCBs due 2017. The committee also approved amendment to the terms of the existing FCCBs to the extent not exchanged pursuant to the exchange offer.

The new bonds will be listed on Singapore Exchange Securities Trading. The FCCB issue opened on 5 July 2016. The floor price for the conversion of the bonds shall be Rs 10 (the face value). The company has issued notices to convene a meeting of the holders of the existing FCCBs on 27 July 2016 for approving the proposed amendments to the terms of the existing bonds.

On a consolidated basis, 3i Infotech reported net loss of Rs 78.57 crore in Q3 December 2015 which was sharply lower than net loss of Rs 299.59 crore in Q3 December 2014. Net sales declined 10.40% to Rs 286.39 crore in Q3 December 2015 over Q3 December 2014.

3i Infotech provides software solutions and a wide range of IT services. The company has a customer base in geographies like South Asia, Middle East and Africa, Asia Pacific, Kingdom of Saudi Arabia and North America.

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