Sintex Industries redeems FCCBs, shares rise 2%

Plastic products producer Sintex Industries gained more than 2 percent on Thursday after the company redeemed its foreign currency convertible bonds (FCCBs) worth USD 291 million on due date.

Amit Patel, group MD said debt-to-equity ratio would decline below 1 (i.e. 0.8) post redemption of FCCBs. The company had issued FCCBs aggregating USD 225 million on March 12, 2008 and the face value of each bond was USD 1 lakh. "The zero-coupon bonds were to be redeemed at a premium of 29.28 percent on March 13, 2013," Sintex added. According to a release sent to exchanges, the redemption was achieved through a prudent mix of step down coupon FCCBs aggregating USD 140 million, a QIP, internal accurals and preferential warrants to promoters. After conversion of preferential warrants, the promoters' holding in the company will increase to 39.33 percent. At 10:51 hours IST, shares gained 1.29 percent at Rs 58.80 on Bombay Stock Exchange.