Mascon Global raises funds via FCCB and equity
Mascon Global Ltd, a leading Indian IT company, announced that it has successfully placed an offering of $50 million 2% foreign currency convertible bonds.
INDIATIMES NEWS NETWORK|
Last Updated: Jan 02, 2008, 04.07 PM IST
MUMBAI: Mascon Global Ltd, a leading Indian IT company, announced that it has successfully placed an offering of $50 million 2% foreign currency convertible bonds. The bonds have a maturity of five years and one day and are convertible into shares at a price of Rs 23 per share.
"The FCCB issue attracted significant interest from overseas institutional investors and was substantially oversubscribed", according to sources at KNG Securities LLP, the London based securities firm which acted as book-runner for the deal.
The Company intends to use the net proceeds raised from the FCCB for aquisitions and infrastructure development as permissable by RBI guidelines. Mr. Sandy Chandra, CEO of the Company said, "The funding from the FCCB will allow Mascon to grow its core businesses and create a global footprint. " He adds, "Mascon is well placed to take advantage of its 25 years of experience, strength in multiple verticals and a blue-chip client base."
In addition to the FCCB, the company has also issued shares and warrants to a strategic investor worth up to an additional USD 13 million. "Given the current weakness in global credit markets, the ability to raise funds at this time is reflective of investor confidence in the Indian market and the attractiveness of Mascon Global from a valuation perspective", said Arup Ganguly, Managing Partner at KNG Securities, who advised on the overall financing programme.
The stock closed on Monday at Rs 24.25 on BSE, up by 5% compared to previous close of Rs. 23.1. The convertible bonds are listed on the Luxembourg Stock Exchange.
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