Ranbaxy fully redeems $440 mn convertible bonds

Ranbaxy fully redeems $440 mn convertible bonds

New Delhi: Pharma major Ranbaxy Laboratories on Friday informed the Bombay Stock Exchange (BSE) it has fully redeemed $440 million (about Rs1,985 crore) zero coupon convertible bonds.

In 2006, the company had launched an offering of $400 million zero coupon foreign currency convertible bonds, with an option to allot additional bonds of up to $40 million.

The maturity date for convertible bonds is 18 March.

Zero coupon convertible bonds are debt instruments that pay no interest and can be converted into common stock of the issue at a certain price.

The capital raising exercise was one of the largest by an Indian Healthcare company at that time.

The bonds had a tenor of five years and one day and were convertible into equity shares at a premium of 60% to the BSE closing price of Rs447.70 as on 15 February 2006.

The yield to maturity of the bonds was set at 4.8% per annum, the company had then said.

Shares of Ranbaxy closed at Rs468.55 on the BSE, up 0.26% from its previous close.