Experts say that until the market bounces back to a respectable level and creates confidence among investors, who could look forward to some price appreciation, IPOs will not be successful.
Indian Hotels Company Ltd has raised $150 million through foreign currency convertible bonds issue, which was oversubscribed by more than 20 times, to fund acquisitions, expansion and modernisation in the country and abroad.
After recovering from issues such as defaults on foreign currency convertible bonds and piling debts, pharmaceutical major Wockhardt has been on the slow lane through the last six months, following warnings from global regulators such as the US Food and Drug Administration (FDA) and the UK Medicines and Healthcare Products Regulatory Agency.
Telecom infrastructure major GTL Infrastructure will use its Rs 2,200 crore cash reserves to buy back foreign currency convertible bonds.
Under the revised norms, the price of the shares to be issued to overseas investors will not be less than the average of the weekly high and low prices on the stock exchanges during two weeks, instead of six months.
The company will use the proceeds to fund its expansion plan and repay debt.
Confirming this, Chief Financial Officer S Venkatesan said that the company has passed an enabling resolution to raise around $200 million from foreign investors either through an FCCB or a private placement.
To be the first firm to take advantage of new RBI ruling.
The price has been cut 39 per cent to Rs 555.85 from Rs 908 per share originally after its request to redeem the bonds ahead of maturity was rejected by the Reserve Bank of India.
Bondholders rejects the company's proposal seeking four-month extension to repay debt of nearly $221 million. Group chief financial officer Kirti Vaga expects an acceptable solution at the earliest.
Anil Ambani Group firm Reliance Communications said it has bought back foreign currency convertible bonds (FCCBs) worth Rs 121.22 crore (Rs 1.21 billion).
Mumbai-based business process outsourcing firm Firstsource plans to sell US-based MedAssist, a health care business it acquired in 2007. Firstsource had paid $330 million for the acquisition.
Iron ore exporter Sesa Goa said on Friday it would raise Rs 6,000 crore by issuing various securities in domestic and overseas markets for funding its business plans.
Around $1.54 billion was raised by 60 companies through the automatic approval route, which does not require the approval of RBI or the government, while $520 million was raised by the Exim Bank under the approval route, to meet its lending requirements abroad.
The Reserve Bank of India (RBI) has said it expects several companies which have raised money through foreign currency convertible bonds (FCCBs) to face severe funding problems in the next two years due to lacklustre equity markets.
Hyderabad-based ICSA (India) is divesting 14 per cent of its stake to Citigroup Venture Capital International Growth Partnership Mauritius for $30 million
The latest crisis in the form of default to bondholders can be a crippling blow.
Indian companies raised over $3.41 billion overseas in December through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs), the Reserve Bank of India (RBI) has said.
Indian companies have raised over Rs 3.13 lakh crore up to September, excluding foreign currency convertible bonds (FCCBs) and external commercial borrowings in September. This is close to the cumulative Rs 3.14 lakh crore raised in 2009.Inc's highest fund mobilisation was in 2007, when it mopped up over Rs 3.20 lakh crore.
As many as 126 deals were carried out in which borrowers raised the money through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs), according to the data released by RBI.
Indian companies that raised large sums of foreign funds to finance growth and acquisition plans during the bull run in the stock markets are in a Catch 22 situation. The conversion price of their foreign currency convertible bonds is several times higher than their current market prices.
Mallya had bought the pedigree scotch major, based in Scotland, for $1.2 billion in 2007.
SpiceJet will get $20 million from MacRitchie Investments, Singapore (a wholly-owned subsidiary of Temasek Holdings) and Istithmar, a UAE-based private equity firm.
Only five Indian companies would be in a position to choose most available redemption options for their foreign currency convertible bonds (FCCBs), due for redemption this year, according to a report by Fitch. The rating agency said of the $7 billion FCCBs, 20 per cent were likely to face a default, owing to the stressed liquidity position of the companies.
GMR Infrastructure on Tuesday said it plans to raise Rs 50 billion (Rs 5,000 crore) by selling shares in domestic as well as international markets.
The government on Tuesday cleared 34 foreign direct investment proposals worth Rs 617.28 crore, including Zee Telefilm's plans to issue Rs 480 crore foreign currency convertible bonds to two foreign companies.
Pharma company Lupin is looking at acquisitions abroad for its expansion plans this fiscal and has raised $100 million for the purpose.
After cheap toys, consumer goods and other manufactured products, cheaper loans could be the next major Chinese import into India, and the credit may go to a potential FCCB crisis looming large over Indian corporates.
Corporate India raised Rs 1,93,823 crore (Rs 1938.23 billion) in 2006-07 through debt, 88 per cent higher than the amount raised a year earlier.
Both advertising growth and investments into the business have been lackadaisical. It, therefore, seems to be a good time to look at the pattern of investments into the M&E industry over the last three years.
India's second-biggest commercial vehicle maker Ashok Leyland plans to tap foreign markets to raise upto $100 million, a top company official said on Wednesday.
