Mumbai : Vivimed Labs Limited, bought back and cancelled Foreign Currency Convertible Bonds (FCCBs) of USD 12.5 mn out of USD 15 mn issued in April 2007, maturing for redemption in April 2012.
Bondholders of balance Bonds of USD 2.5 mn opted for conversion into Equity Shares at Rs. 185 per share. Accordingly 563,918 equity shares have been allotted to the bond holders on 31.08.09.
The option to convert bonds into shares is becoming more viable as the amount of unsecured debt goes down when companies buy back FCCBs at a discount to the face value of the bonds.
FCCB buybacks were made possible by RBI last November when the apex body permitted companies to buyback FCCBs using their Forex reserves or the ECB route, and also out of their Rupee reserves, provided that the amount didn’t exceed $50 million and it was given from the company’s internal accruals.
Mr. Santosh Varalwar, Managing Director of Vivimed commented, “We had sufficient cash reserves for the buy back and our financials are further strengthened by this move. The Balance bonds are now converted into equity shares. Our long term buyback liabilities stands reduced and net worth of the Company has increased by Rs 10.43 crores directly.”
About Vivimed Labs Ltd.
Vivimed Labs Limited, is a leading manufacturer of Pharmaceuticals & Specialty Chemicals for the Personal Care Industry. Vivimed has a range of products that cater extensively to the exacting demands of global manufacturers of personal care products and a brand range of finished dosage forms for domestic and fortune 100 Companies.
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Shahab Shaikh | Account Manager
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