Sterling Biotech raises US$250 million through FCCBs

Sterling Biotech Ltd has announced that the Company has issued Zero Percentage Foreign Currency Convertible Bonds (FCCBs) due 2012 aggregating to US$250 million.

The Bonds carry a 0% coupon with a yield to maturity of 6.35% per annum and are redeemable in 2012 i.e. after 5 years and 1 day from closing date.

The Bonds are convertible into equity shares of the Company at any time after June 18, 2007 at a conversion price of Rs 204.576 per share which represents a premium of 25% to the Volume Weighted Average price. The Bonds are expected to be listed on the Singapore Stock Exchange. The Bonds are convertible into the Ordinary Shares or GDR's of the Company.

J P Morgan Securities Ltd is the Lead Manager and Sole Book runner for the issue of the Bonds.

The stock closed the day at Rs.172.65, up by Rs.5.95 or 3.57%. The stock hit an intraday high of Rs.174.50 and low of Rs.163. The total traded quantity was 2433286 shares compared to 2 week average of 988877.

Source : Equity Bulls

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