Strides Arcolab rallies on full redemption of FCCBs,

The company has redeemed the outstanding $80 million FCCBs on due date through internal accruals.

Strides Arcolab has rallied 5% to Rs 756 after the pharmaceutical firm said that it has redeemed the outstanding $80 million foreign currency convertible bonds (FCCBs) on due date through internal accruals.

“The company had originally raised $100 million FCCBs in the year 2007 and had bought back $20 million during the year 2009. The total payout for redeeming the outstanding bonds was $116 million including the redemption premium of 45.058%,” Strides Arcolab said in a regulatory filing.

There are no outstanding FCCB, post this redemption. The company utilized its cash balance to fund the redemption, it added.

The company’s net debt equity ratio is estimated at 0.75 after this redemption as against 1.67 for the year ended December 31, 2011.

 

The stock opened at Rs 733 and hit a high of Rs 761 after the announcement on the Bombay Stock Exchange. A combined 352,324 shares have changed hands on the counter till noon deals on both the exchanges.