Man Industries repays FCCBs worth $64.35 million

MUMBAI: Mumbai-based Man Industries (India), a manufacturer of pipes for the oil and gas industry, on Wednesday said it has repaid foreign bonds worth $64.35 million (approximately Rs 360 crore) by raising low cost external debt and through internal accruals.

The pipe maker had raised foreign currency convertible bonds in 2007 for general corporate purposes and has met the redemption through an external commercial borrowing of $55 million and the balance in internal accruals.

"We have never defaulted on our borrowings and have maintained that with the bonds also," chairman R C Mansukhani told ET. "The average cost of our borrowing is now at 6%," he added.

A recent report by Fitch ratings agency said that about $7 billion worth of FCCBs are due for redemption for Indian companies this fiscal year.

Shares of Man Industries ended down 0.3% at Rs 96.90 on the BSE on Wednesday, when the broader index was down 0.4%.

Lines pipes are made from specialized steel and used for transporting oil and gas from oil wells to consuming centres. Man Industries has an order book of Rs 1,000 crore mainly from oil and gas projects overseas, said Mansukhani.