Board approves USD 100 million FCCB issue at 15 percent discount
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Board approved unsecured Foreign Currency Convertible Bonds worth USD 100 million, comprising 1000 bonds of USD 100,000 each. Coupon is 2 percent per annum, issued at 15 percent discount to principal amount, so effective issue size is USD 85 million. Tenure is 5 years maturing July 2031. Conversion price fixed at INR 3.60 per equity share based on regulatory floor price. Based on current exchange rate, full conversion would translate to about 264.56 crore underlying equity shares. Issue opens July 6, 2026, to be listed on Afrinex Stock Exchange in Mauritius.
Massive potential equity dilution since conversion can add roughly 264 crore shares, which may weigh on the stock. Low 2 percent coupon is attractive for the company but signals need for capital.