Man Industries to raise US$50 million through FCCB issue

Man Industries India Ltd on May 04, 2007 has announced that it has successfully placed an offering of USD 50 million zero coupon foreign currency convertible bonds.

The bonds have a tenor of five years and one day and are convertible into equity shares at a price of Rs 287 per share (at a premium of 26.2% over the VWAP of the shares on the BSE on May 03, 2007). BNP Paribas acted as the sole Lead Manager and Bookrunner to the transaction.

The Company intends to use the net proceeds raised for expansion of manufacturing facilities in India, international expansion and such other purposes as may be permitted by Indian law and RBI Regulation.

Mr. R C Mansukhani, Chairman of the Company commented: "The successful launch of the FCCB is reflection of international investors’ confidence in the growth prospects and management of the Company. The funds raised by the FCCB will provide an impetus for organic and inorganic opportunities available to the Company in Pipe Industry globally".

The Company is a leading manufacturer and worldwide exporter of large diameter Carbon Steel Line Pipes for various high pressure transmission applications for Gas, Crude Oil, Petrochemical Products and Potable Water. The Company has state-of-the manufacturing facilities for LSAW (Longitudinal Submerged Arc Welded) & HSAW (Helically Submerged Arc Welded) Line Pipes and also for various types of Anti-Corrosion Coating Systems.

- These Bonds are expected to be listed on the Singapore Stock Exchange and BNP Paribas is the manager and book runner to the issue.

- The closing is likely to take place on May 22, 2007 subject to requisite approvals having being obtained.

Source : Equity Bulls

Keywords