Jindal Stainless' $30m FCCD's Subscribed. (Business Standard 22.12.99)

Jindal Stainless' Ltd's (JSL) $30 million foreign currency convertible debentures (FCCDs) issue has been fully subscribed within three days of the opening on December 17, 1999. According to sources, the FCCDs were subscribed at a premium of 5 per cent over the average quoted price of the JSL scrip 10 days prior to December 3, 1999.

This works out to about Rs 124 per share. JSL currently trades in the range of Rs 123-130 per share. The issue is lead-managed by Credit Llyonnais Securities Asia. Hong Kong and US-based institutional investors are understood to have picked up majority of the paper. The issue will close on December 24, 1999.

The JSL FCCD issue, with an actual size of $26.5 million and a green shoe option of $3.5 million, is fully-convertible at the end of five years, i.e. by 2004-end. The FCCD will be listed on the Luxembourg Stock Exchange.

Sources said the conversion will result in the Jindal's stake in the company coming down to 45 per cent from 54 per cent now.

The inflow from the FCCD issue is for part-funding the company's expansion plans at its Hissar unit. Cold-rolling capacity at the unit will go up by 60,000 tonne per annum from the current level of 30,000 tonne. Part of the funds for the expansion, estimated at Rs 250 crore, is being raised through debt. JSL has already tied up with an ICICI-led consortium for rupee loans. According to JSL director (corporate and international marketing), NC Mathur, the expansion programme at Hissar is expected to be completed by mid-2000.