Welspun Gujarat raises $130 mn via FCCB

Welspun Gujarat raises $130 mn via FCCB

Mumbai: Steel pipe maker Welspun Gujarat Stahl Rohren said on Friday it has raised $130 million via foreign currency convertible bonds (FCCB) to fund its capex and growth.

The company will use the money for its capital expenditure and investments in growth areas, director Akhil Jindal told Reuters.

“With this FCCB, our funding requirement would be met fully," Jindal said while adding it did not have any more fund raising plans for now.

The company plans to invest Rs550 crore in two pipe projects in India and does not have any other expansion plans now, Jindal said.

The company, which has a debt-equity ratio of 1:1, has an order book of approximately Rs6,900 crore Jindal said.

The FCCBs are expected to be listed on the Singapore Exchange, it said in a statement to the Bombay Stock Exchange, adding JP Morgan is the sole book-runner to the transaction.

At 12.20pm, shares were down 3.6% at Rs256.5 in a weak Mumbai market.