Rolta India redeems USD 134.7 m FCCBs, shrs rise 5%

Moneycontrol Bureau

Rolta India has redeemed all its outstanding foreign currency convertible bonds (FCCBs) amounting to USD 134.7 million, including redemption premium of USD 38 million, the IT solutions provider said on Thursday.

The company said it has made the payment to the principal agent of FCCBs -- Deutsche Bank's London branch, and accordingly Rolta won't have to allot 1,65,78,519 equity shares, which would have arisen had the FCCBs been converted. The paid up capital of the company will remain unchanged post redemption of FCCBs, it had said.

Rolta had announced in March that it had tied-up funding of USD 135 million via external commercial borrowings (ECBs) to redeem FCCBs.

The company's shares rose post today's announcement and in afternoon trade were up 4.5% at Rs 79.05 on NSE.

Standard & Poors had recently warned in a report that around half of  the 48 companies, which had issued  FCCBs worth USD 5 billion maturing in 2012, were likely to default on redemption payment. This had raised lot of concerns among investors.

Strides Arcolab had said on Wednesday that it redeemed its outstanding USD 80 million in FCCBs on due date.