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Gitanjali Gems, one of the largest integrated branded jewellery companies, has redeemed its Foreign Currency Convertible Bonds worth $110 million.
Gitanjali Gems issuance of one per cent FCCB worth $110 million matured on November 25.
Out of the total issuance, 63 per cent was converted into equity shares and balance was redeemed at a premium. A total payment of $57.2 million was made to redeem the bond, the company said in a press release.
Many of the subscribers of the bond had opted for conversion into equity as the company's share price was trading at significantly higher than the conversion price of Rs 220.
Effective price of Rs 312 was the breakeven for the bondholders.
Many investors opted conversion during the last four weeks when the average price was hovered at Rs 345, said the release.
After conversion the total outstanding shares of the company have increased from 84.9 million shares as last fiscal to 91.1 million shares.
Mr Choksi, Chairman and Managing Director, Gitanjali Group, said the reduction in debt post-conversion will improve the leverage, gearing ratios as well as company's exposure to dollar payments.
The Group has a strong presence at every level of the business, right from sourcing diamonds to retailing its products through a vast network of over 3,600 points of sale of self owned, franchised and retailed stores that cater to the end consumer across all the major jewellery markets of the world.
On Monday, the company's shares were up 0.94 per cent at Rs 337 on the BSE.
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