United Spirits shareholders approve USD 225m FCCB issue

At an EGM, shareholders of United Spirits have given approval to the company for a foreign currency convertible bond (FCCB) issue for upto USD 225 million, reports CNBC-TV18�s Vineetha Athreya.

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At an EGM, shareholders of United Spirits have given approval to the company for a foreign currency convertible bond (FCCB) issue for upto USD 225 million, reports CNBC-TV18's Vineetha Athreya.

United Spirits Ltd, a part of Vijay Mallya-led UB Group, Friday said its shareholders have approved to raise up to USD 225 million through issue of Foreign Currency Convertible Bonds (FCCBs).

"The members have unanimously approved the special resolution for issue of FCCBs, convertible into equity shares, for an amount not exceeding USD 175 Million with a green shoe option of an aggregate sum not exceeding USD 50 Million," United Spirits Ltd (USL) said in a filing to the BSE.

At current exchange rate, USD 225 million would be over Rs 1,130 crore.

In an earlier filing the Vijay Mallya-led UB Group company had said that it intends to raise the amount to bring down the high cost debt and to consequently improve both profits and EPS (Earnings Per Share).

Standard Chartered Bank, Rabo Bank and DBS Bank have been appointed as advisors to the issue. The board of directors had approved the proposal during their meeting held on December 21, 2011.

Shares of USL Friday closed at Rs 625.45 on the BSE, down 1.89 percent from its previous close.