Goldman Sachs acquires 8.2% stake in XL Telecom via FCCB

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Goldman Sachs acquires 8.2% stake in XL Telecom via FCCB

Goldman Sachs has acquired 8.2% stake in XL Telecom and Energy via FCCB (Foreign Currency Convertible Bond) conversion, reports CNBC-TV18. At 11:34 hours the share was trading at Rs 31.10, up Rs 5.15, or 19.85%.

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Excerpts from Your Stocks on CNBC-TV18 Watch the full show » ALSO READ See latest News about XL Telecom See previous management interviews See what other Experts & Brokerages are saying about XL Telecom XL Energy BSE | NSE 31/05/12 Are Mutual Funds betting on XL Energy?

XL Telecom and Energy has touched an intraday high of Rs 31.10 and an intraday low of Rs 26.50. At 11:34 hours the share was trading at Rs 31.10, up Rs 5.15, or 19.85%.

Goldman Sachs has acquired 8.2% stake in XL Telecom and Energy via FCCB (Foreign Currency Convertible Bond) conversion, reports CNBC-TV18.

There were pending buy orders of 154,429 shares, with no sellers available. It was trading with volumes of 156,508 shares, compared to its 5-day average of 48,465 shares, an increase of 222.93%.

Yesterday the share closed up 0.19% or Rs 0.05 at Rs 25.95. Market capitalisation stands at Rs 70.41 crore.

Here is a verbatim transcript of K Vasudeva Rao, ED of XL Telecom interview on CNBC-TV18.

Q: Can you first just tell us how much stake has been acquired and at what price?

A: This is about 8.2% and this is about 18,15,000 shares. It is about Rs 29.84 crore worth value of the shares.

Q: What were the originally issued FCCB and how much more is left to be converted post this?

A: We had raised USD 14 million worth FCCBs during 2007 and the amount leftover is about USD 4.4 million as of today.

Q At what price has this conversion been done?

A: At Rs 160-Rs 10 plus Rs 150 premium is the conversion rate.

Q: So are you expecting to see some more conversion done?

A: Actually USD 4.35 million is the last leg which is left over. We need to wait and see when these holders decide to convert. We had a talk with them recently in the concall. It looks like the current holder-this guy-is only permitted to invest in bonds, so he has some technical problem to convert into equity. But he is trying to talk to somebody else and see how we can do that.

As of now he has no right to convert into equity. So we are waiting for his decision. If that happens the complete FCCB would have been converted.

Q: So totally this 8.2% stake that was currently converted was done at a price of Rs 160?

A: Yes.