Tulip Telecom surges on FCCB repayment hopes

Tulip Telecom has locked in 5% upper circuit of Rs 37.60 on the BSE after the company said that it may be able to repay its foreign currency convertible bonds (FCCB) worth $140 million (about Rs 760 crore) by the end of this month.

“The company has a firm intent to honour its obligations to the bondholders at the earliest and company endeavors to complete this process at the earliest,” Tulip Telecom said in a statement.

Total outstanding amount due to bond holders on redemption of the outstanding existing FCCBs is approximately $140 million including premium and prior to withholding tax, it added.

 

The stock had fallen 62% from Rs 93.55 in past three months compared to 11% surge in benchmark Sensex after the company failed to repay bondholders, which came up for redemption in August.

A combined 454,108 shares have changed hands on the counter so far and there are pending buy orders for 299,786 shares on the BSE and NSE.