Gremach raises $50 million from overseas

Gremach raises $50 million from overseas


Mumbai: Construction equipment leasing firm Gremach Infrastructure Equipments & Projects said on 11 December it has raised $50 million through the issue of foreign currency convertible bonds (FCCBs) in the international markets.

The bonds are expected to be listed on the Singapore Stock Exchange and closing is likely to take place on 21 January 2008, subject to requisite approvals, Gremach said in a filing to the Bombay Stock Exchange.

The FCCBs issue was oversubscribed by 60%.

The company intends to use the net proceeds of the issue for foraying into oil rig business as may be permitted by Indian law and RBI regulation.

“The funds raised by the FCCB will provide an impetus for organic opportunities available to the company in oil rig business globally," Agarwal added.

The bonds have a tenure of five years and one day and are convertible into shares at Rs376.36 each.

Standard Chartered Bank acted as sole book runner and Atherstone Capital Markets was the financial adviser for the FCCB issue.

Shares of Gremach were trading at Rs351.25, up 2.05% on the BSE in morning trade.