Some stocks are under performing because of FCCB, or Foreign Currency Convertible Bond, pressure.

Here is a verbatim transcript of Varinder Bansal’s comments on CNBC-TV18. Also watch the accompanying video.

The important thing to consider here is the maturity date, even as some stocks are feeling the pinch even more due to the FCCB conversion price being way higher than the current market price (CMP). In most of these stocks’ cases, the CMP is almost 50-70% higher than the CMP. The maturity of many FCCBs is expected in 2009, which is likely to peak in 2010-2011.

The promoters are left with two options. One is to reset the conversion price, which could dilute the promoters' holdings. Two - redeem the bonds, which could increase the debt obligations. Also, the company will need to have the money to do that.

Here is a list of shares that are under pressure along with their FCCB conversion prices, CMPs and their maturity dates.

FCCBs: Conversion to market prices (Rs/sh)

                                    Conversion      CMP    Maturity date

Subex Azure                 897.6                85        2012

HCC                             341.7                74        2011

Bajaj Hind                     621                   106      2011

Amtek Auto                   616                   175      2011

Firstsource                    128                   35       2012

FCCBs: Companies under pressure (Rs/sh)

                                    Conversion      CMP

Megasoft                       115                   55         Sep 2008

Bharati Shipyard            505                   235       Dec 2008

FCCBs: Companies with maturity dates in 2008

                                    Conversion      Maturity date

Megasoft                       Rs 115              Sep 2008

Bharati Shipyard            Rs 505              Dec 2008

FCCBs: Other companies under pressure

Hotel Leela

Ranbaxy

M&M

Tata Motors

Suzlon