Parag Milk Foods Limited has informed the Exchange about Conversion of FCCBs into Equity Shares
PARAGMILK · price
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Awaiting price reaction for this filing.
Parag Milk Foods has allotted 57,33,713 fully paid-up equity shares (face value Rs. 10) to International Finance Corporation (IFC) at a conversion price of Rs. 135 per share, following IFC's exercise of conversion rights on its entire holding of 10,680 Foreign Currency Convertible Bonds (FCCBs). This increases the company's paid-up equity share count from 11,93,75,841 to 12,51,09,554 shares, a dilution of approximately 4.8% for existing shareholders. With this conversion, the outstanding value of FCCBs stands reduced to NIL, meaning the company has fully settled this convertible debt obligation. The newly allotted shares will rank pari-passu with existing equity shares for dividend and other benefits.
Short-term dilution of about 4.8% for existing shareholders, but the full conversion removes any future FCCB-related equity overhang and cleans up the company's capital structure. The Rs. 135 conversion price (vs Rs. 10 face value) reflects a favorable pricing for the company relative to typical FCCB terms.