Mcdowell's GDR, FCCB issues oversubscribed, raises $ 230 m

Bangalore, Mar 24: McDowell and Company, world's third largest and India's largest alcoholic beverages company and the flagship company of the UB Group, has successfully concluded priced its simultaneous maiden offerings of Global Depository Shares (GDS) and Foreign Currency Convertible Bonds (FCCBs) to raise 230 million US Dollars to part finance the debt of the Shaw Wallace company it had acquired.

While the GDR issue to be listed at Luxembourg Stock Exchange had been priced at US dollar 7.4274 (Rs.660) per GDR at a one per cent premium of the company's quoted price of shares during the last one week, the FCCB, to be listed in Singapore, had been issued at a 30 per cent premium on the GDR Reference price which would carry a coupon of two per cent per annum payable in arrears semi annually and carry an interest rate of 6.65 per cent.

The NCCB bonds had a Hard No call period of 18 months after which mandatory conversion at the option of the issuer, at a premioum of 25 per cent.

While the GDRS fetched a total of 130 million Dollars, the FCCB's aggregated 100 million Dollars, Mr Ravi Nedungadi, UB Group Chief Financial Officer told newspersons here today.

Mr Nedungadi said the GDR issue was oversubscribed by almost twice with CLSA Asia-Pacific Markets being the sole global coordinator and book runner for the issue. McDowell would issue 17,502,762 GDRs. The FCCBs were handled by the City Group. He said ''We are extremely pleased that large institutional investors have appreciated our business model inherent strengths and reposed faith in our company. As a result of this, they have decided to invest in the company very close to the market price for the shares.'' Post issue, the company would have some quality shareholders who would add value to it, he added.

The funds raised from the twin issues of GDRs and FCCBs would be partly utilised towards repaying a portion of debt incurred to finance the Shaw Wallace acquisition, which would go a long way in de-leveraging the Company's balance sheet. The funds would also be utilised for strategic initiatives and acquisitions and for other general corporate purposes. A sum of Rs 565 crore realised from the twin issue would be added to the reserves, he informed.

UNI