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Rolta, JSW Steel Up On Bond Repayment

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Shares in Rolta India , and JSW Steel rose after companies' said that they have redeemed foreign currency convertible bonds worth $134.7 million and $274.4 million respectively.

Strides Arcolab also rose for the second day after it repaid $80 million outstanding FCCBs. Strides was up 1.2 per cent, after gaining 2.7 per cent on Wednesday. 

Traders say there has been concern about companies' capacity to repay FCCBs, primarily due to a sharp fall in the rupee.

A slumping rupee is expected to cause big market to market losses to unhedged FCCBs, increase the cost of borrowing and even lower the probability of conversion.

Edelweiss estimates $6 billion in FCCBs are outstanding as of May 28, 2012, of which it estimates $3.2 billion will be redeemed in the current fiscal year.

Shares in Rolta rose 4.6 per cent while JSW Steel added 0.7 per cent.

(Reuters)


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