Jan 31, 2000|
ICICI to redeem US$ 200 m Foreign Currency Convertible Bonds
ICICI has planned to redeem US$ 200 m Foreign Currency Convertible Bonds (FCCB's) raised in February 1994. However the FCCB investors are unlikely to exercise the conversion option.
ICICI is India's second largest institution, with a major presence in almost all areas of finance. The company has an asset base of Rs 585 bn in FY99.
The strike price of these bonds at current levels is Rs306, against the decided price of Rs220, taking into account the depreciation in the rupee vis-à-vis the dollar. However investors are unlikely to exercise this option because the current price of the ICICI scrip is Rs 121.
Hence it would make sense for the investors to opt for redemption of these convertible bonds rather than to convert them as they would have to otherwise sell this converted equity at a loss in the domestic market.
ICICI plans to redeem the entire US$ 200 m to investors. These FCCB's were floated by ICICI at an annual coupon rate of 2.5%. It is not clear on how ICICI would redeem this amount whether by issuing fresh equity or raising debt. However in the last year ICICI had raised an ADR issue of US$ 315 m, a public issue of Rs 3 bn and a Rs 5 bn preferential allotment to FI stakeholders.
Many analysts have turned buyers of ICICI due to its restructuring plans and the improving economic scenario.
More Views on News
Aug 10, 2017
IDFC Bank is taking steps to address contracting NIMs and successfully transition in to a retail bank.
Aug 10, 2017
Asset quality will be the key thing to watch out for going forward.
Jul 31, 2017
Almost 74% of the watchlist as provided by the bank of Rs 226 billion in FY16 has turned into non-performing assets.
Jul 25, 2017
Asset quality was under pressure on account of farm loan waivers. Despite the higher provisioning, the company reported a healthy profit growth of 20%.
May 23, 2017
State Bank of India (SBI) ended FY17 on a healthy note but concerns on bad loans from associate banks remain.
More Views on News
Aug 7, 2017
The data tells us quite a different story from the one the government is trying to project.
Aug 4, 2017
The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.
Aug 8, 2017
Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 7, 2017
Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407