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04-04-2012, 10:53 AM #1
United Spirits delays its $225 mn FCCB issue
United Spirits Ltd, a part of Vijay Mallya-led UB Group , on Tuesday said its $225 million FCCB issue will be delayed with bankers asking for audited accounts till March this year.
The company, which had received board approval in December, 2011 to raise up to $225 million through issue of Foreign Currency Convertible Bonds (FCCBs) in early 2012, said it will go ahead once the accounts are ready.
"The bankers to the issue felt that if we are able to provide the audited accounts or numbers as of March, 2012, it will give a better platform for us to explore not only FCCB but also high yield bonds," a company spokesperson said.
The spokesperson further said: "Hence, we decided to go to the market once our audited numbers are ready, while ensuring all other aspects of the transaction like offering circular, due diligence etc are completed in the interim."
He, however, did not provide any details regarding its compilation of the accounts.
United Spirits Ltd (USL) board of directors had approved the proposal during their meeting held on December 21, 2011.
Standard Chartered Bank, Rabo Bank and DBS Bank have been appointed as advisors to the issue.
The spokesperson, however, denied speculations that the fund rising has been affected due to problems faced by another group firm Kingfisher Airlines .
"The fact that USL is a constituent of the same group in which a stressed asset like KFA is a part has got no bearing or impact on the success or otherwise of a public issuance," the spokesperson said.
Shares of United Spirits on Tuesday closed at Rs 672.25 on the BSE, up 5.59 per cent from previous close.