Websol Energy System up 20% on RBI nod for restructuring of FCCB

Websol Energy System shares were locked at 20 percent upper circuit at Rs 42.15 on Friday after the Reserve Bank approved its restructuring of outstanding foreign currency convertible bonds (FCCBs).

"The Reserve Bank of India has approved restructuring of outstanding FCCBs, subject to certain conditions. The restructuring is as per the terms approved by the shareholders of the company in the EGM held on May 26," the company said in its filing.

Websol's shareholders, in its extra-ordinary general meeting held on May 26, approved the restructuring of outstanding FCCBs.

After restructuring, the principal value of outstanding FCCBs will be settled at USD 12 million from USD 16.8 million earlier and there will be complete waiver of accrued interest including penal interest amounting to approximately USD 11.68 million arising out of default situation of FCCBs. The conversion price has been revised to Rs 62 per share, being approximately 17 percent over the regulatory floor price of Rs 52.86 per share.

"Unless the bonds have been previously redeemed, repurchased and cancelled or converted, the company will redeem bonds on May 1, 2021 in cash at Rs 128 percent of principal value of bonds at their accreted principal amount based on a yield of 5 percent per annum compounded semi-annually," the company said in its EGM.

At 11:45 hours IST, there were pending buy orders of 49,272 shares, with no sellers available.Posted by Sunil Shankar Matkar