Anil Ambani-controlled Reliance Communication Ventures Ltd has become an over Rs 90,000 crore (Rs 900 billion) company going by the conversion price of its just concluded Foreign Currency Convertible Bonds.
The company's FCCB issue to raise $500 million dollar (Rs 2,225 crore), which was completed overnight, carries a conversion price of Rs 480.68 per share, representing a premium of 50 per cent over Tuesday's price of Rs 320.45 a share at Bombay Stock Exchange.
The share price, however, dipped over six per cent on Wednesday and closed at Rs 300.20 per share.
The FCCBs can be converted into shares after a period of five years and the issue price for the bonds reflects the confidence of investors that RCoVL is worth at least Rs 90,000 crore.
Giving details of the FCCB issue, a decision for which was taken by the company board on Tuesday, RCoVL said in a statement that the bonds were expected to be listed on the Singapore Stock Exchange.
While the company mopped up Rs 2,225 crore (Rs 22.25 billion) through the FCCBs, the share capital of RCoVL would increase only by two per cent or 4.62 crore (46.2 million) equity share of face value of Rs 5 each if the entire issue was converted into equity.
The issue was handled by Deustche Bank.
FCCBs were issued close on the heels of R-ADA Group restructured its telecom businesses under a single entity RcoVL - in which Reliance Infocomm was merged.
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