Reliance Comm buys back FCCBs worth Rs21 cr

Reliance Comm buys back FCCBs worth Rs21 cr

Mumbai: Anil Ambani Group firm Reliance Communications on Tuesday said it has bought back foreign currency convertible bonds (FCCBs) worth Rs121.22 crore.

The company has repurchased 250 FCCBs worth $100,000 each, aggregating about Rs121.22 crore ($25 million), RCom said in a filing to the Bombay Stock Exchange.

The zero coupon bonds have been bought back at a discount of 52.5% over the issue price and they have been extinguished, the company added.

Earlier this month, the Reserve Bank of India had allowed firms to buy back FCCBs prematurely in rupees if they are at a minimum discount of 25% on the book value.

According to RBI guidelines, the buyback amount is limited to $50 million of the redemption value per company and the resources for the buyback must be drawn out of internal accruals of the company.

Shares of RCom were trading at Rs228.20, up 7.21% on the BSE.