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Foreign funds pick 9-10% equity in Jindal Strips

July 09, 2003 14:45 IST

The O P Jindal Group company Jindal Strips is believed to have struck a deal with the overseas private investors for picking up about 10 per cent equity by acquiring its $15 million foreign currency convertible bonds listed at the Luxembourg Stock Exchange.

The deal has been concluded at the current market price, which is ruling around Rs 220-221, at the domestic bourses, sources told PTI in New Delhi on Wednesday.

This mega block overseas deal has been directly struck between the bondholders and private investors, who are investing about $15 million, they said.

The conversion of FCCBs after the deal would result in the foreign funds having about 9-10 per cent stake in the company as also slight reduction in promoter's holdings, which is likely to come down from the current 55 per cent to 51 per cent.

The FCCBs, which are due for conversion/redemption in December 2004, will be converted into equity after the conclusion of the deal, sources said.

The company had prepaid 50 per cent of the $30 million FCCB in April and had been trying for either converting them or prepaying them as a part of drive to bring down its debt.

When contacted, the company sources declined to comment on the issue.

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