One of my concern which still i am not able to understand is the issuance of two tranches of FCCB. Even without the FCCB(considering FCCB not converted), company still has ample capital adequacy ratio. These FCCB are issued with conversion rate around rs.240 per share.
If we take this quarter Q1FY23, company stock price ranged from approx. 90-160. But still 10 million dollar worth of FCCBs are converted to equity at conversion rate around 240. this happened Q4FY22 also. Why the bondholder is converting the bond when current market price at lower range. Instead if the same bondholder decided to keep it as bond, he would have earned 2.25% interest rate for 10 million dollars.
Really curious to know about the bondholder who is doing conversion now
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