CASE STUDY ON FCCB

But as the maturity date nears, many companies have either already begun negotiations – usually asking for more time – or started the buyback process. With the maturity date less than a year away, the company has started buying back the bonds. Ira Dugal is assistant managing editor, Mint. INH hereinafter referred as ‘Equitymaster’ is an independent equity research Company. In , 24, crore was raised, after which issuances dwindled.

Overseas rupee bonds are also likely to become a reality soon once the regulator issues final guidelines. Now play the battle royale game wearing Baahubali outfit More. Still, those advising companies on fund raising say Indian banks will be wary of lending in such cases, since, as Thunuguntla points out, “Purpose and amount, both are challenging. In some cases, winding-up petitions have been filed. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day.

If the sale goes through, RCOM hopes to use the money to reduce its mounting debt.

These bonds were redeemable on the maturing date at Please do not use this option on a public machine. Given this history, the controversy brewing around Castex Technologies should not come as a huge surprise. Tanushree Banerjee explains everything you need to know about the Rebirth of India and SensexAs the name suggests, FCCBs are bonds issued in a foreign currency that give investors the option of converting them into equity.

Fcc is not an Investment Adviser. Fcb the Leela Group’s newest property has been especially designed to attract a foreign clientele, its Chief Financial Officer is busy staving off foreign investors.

  THESIS DATABANK UGENT GESCHIEDENIS

Later, the RBI further liberalised the scheme and allowed such buybacks under the automatic route. Bond holders could convert the bonds at any time on or after November 24,but studg to the close of business on September 25, This, in turn, meant that these bonds could not be converted into equity and Kn firms were left staring at huge redemptions. In24, crore was raised, after which issuances dwindled. Comments are moderated by Equitymaster, in accordance with the Terms of Useand may not appear on this article until they have been reviewed and deemed appropriate for posting.

The FCCBs issue was oversubscribed by five times. The complexity of the product has fase over the years and now some of these issues make conversion mandatory if the share price goes well above the conversion price.

Sign Up Forgot Password? About this item Settings Related products Abstract This structured assignment is to accompany the case. And so, redemption is the option for a vast majority of these issues. fcccb

case study on fccb

Here’s why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster. This combined with a depreciating domestic currency can lead to devastating consequences.

Trouble at Wockhardt Limited

The interior, lit with murano chandeliers from Italy, promises a palatial experience for those seeking to experience royal Indian hospitality. Inbondholders filed a winding-up petition against Zenith Infotech Ltd after ffccb company failed to repay about crore.

A Foreign Currency Convertible Bond FCCB is a special type of convertible bond which is issued in a currency different from the issuer’s studu currency. Samsung has just launched a new sensor for ultra-high resolution mobile photography How to flash Android Q Beta Indians are searching ‘dating’ more than ‘matrimony’: With the maturity date less than a year away, the company has started buying back the bonds.

  THESIS BINDING BRIDGEND

A company release relating to the loan said: About Us The Equitymaster Way. Tayal group, to court.

case study on fccb

The company also says it has received indicative offers from interested parties seeking to acquire RCOM’s controlling stake in Reliance Infratel, its telecom tower unit. Register Product search Getting started Search for products Try something new.

Trouble at Wockhardt Limited|Finance|Case Study|Case Studies

But as the maturity date nears, many companies have either already begun negotiations – usually asking for more time – or started the buyback process. Although FCCB issuances fell, instances of trouble caused by these instruments kept cropping up. Nor is it a primary caxe source.

As a result, there will likely be a negative impact on the capital structure of the issuer companies. The conversion price at which the bond will be changed into shares is decided beforehand.