JK Paper has raised close to Rs 225 crore through the foreign currency convertible bonds (FCCB) route on a private placement basis to three investors — FMO (Netherlands), DEG (Germany) and Proparco (France).
The issue has been priced at Rs 65 a share with a face value of Rs 10 each. FCCBs may be converted into equity anytime after three and a half years from the date of issue. The stock closed at Rs 49.05 on the BSE, a fall of about one per cent.
The instrument would be repaid between the fifth and the seventh year, if the FCCBs are not converted.
The FCCB would part fund JK Paper's Odisha plant that is to be set up at an estimated project cost Rs 1,653.37 crore.
The project entails setting up of a new or augmented fibre line which can produce approximately 2,15,000 tpa of pulp and a paper machine for manufacturing 1,65,000 tpa of wood free copy paper
Alpen Capital India Private Ltd acted as a merchant banker, along with Rabo India to issue these unsecured FCCBs
the best blog to describe indian market and equity
