Welspun Corp repurchases FCCBs worth $24.4 million

MUMBAI: Welspun Corp, the flagship company of $3.5 billion Welspun Group, today said it has part repurchased foreign currency convertible bonds (FCCBs) worth $ 24.4 million through open market route.

These bonds, which were due for redemption in 2014, have been repurchased at an average discount of around 7 per cent on the accreted value of bonds.

"We have part repurchased 4.50 per cent Foreign Currency Convertible Bonds (FCCBs), due for redemption in 2014. These bonds (worth)...$ 24.4 million have been repurchased through the open market route, at an average discount of approximately 7 per cent on the accreted value of the bonds," the company said.

The company, which manufactures pipelines, had bought back FCCBs worth $ 44.1 million in October 2012, taking the total repurchase to $ 68.5 million in FY13.

Referring to the outstanding FCCB amount, the company said, "After accounting for this repurchase, convertible bonds worth $ 81.5 million remain outstanding and due for maturity by October 2014."

With a current capacity of 2.425 million tonne per annum in Dahej, Anjar and Mandya in India, Little Rock in the USA and Dammam in Saudi Arabia, Welspun supplies pipes to most of the Fortune 100 oil and gas companies.