Metals News
Rolta, JSW Steel Up on Bond Repayment
industry news
11:17AM
Jul 2,2012
Source:SMM

Reuters Market Eye - Shares in Rolta India (ROLT.NS), and JSW Steel (JSTL.NS) rose after companies' said that they have redeemed foreign currency convertible bonds worth $134.7 million and $274.4 million respectively.

Strides Arcolab (STAR.NS) also rose for the second day after it repaid $80 million outstanding FCCBs. Strides was up 1.2 percent, after gaining 2.7 percent on Wednesday. Traders say there has been concern about companies' capacity to repay FCCBs, primarily due to a sharp fall in the rupee.

A slumping rupee is expected to cause big market to market losses to unhedged FCCBs, increase the cost of borrowing and even lower the probability of conversion.

Edelweiss estimates $6 billion in FCCBs are outstanding as of May 28, 2012, of which it estimates $3.2 billion will be redeemed in the current fiscal year.

Shares in Rolta rose 4.6 percent while JSW Steel added 0.7 percent.

 


 

Rolta India
JSW Steel
foreign currency convertible bonds
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