Xl Telecom Issues 18 Lakh Shares To Goldman Sachs On FCCB Conversion

XL Telecom & Energy Ltd has alloted over 18 lakh shares to Goldman Sachs Investments (Mauritius) I on the conversion of bonds.

Golman Sachs has picked up 8% stake i.e.18,65,156 equity shares at Rs.150 per share, aggregating to Rs.27.97 Cr by converting foreign currency convertible bonds(FCCBs) into shares.

Transaction Reference: ET

It had raised $40 million in October 2007 and, last year, reset the price of FCCB convertible into equity from Rs 260 to 160 and had issued some shares due to such conversion from FCCBs.

Three years ago, XL Telecom was largely a CDMA technology telecom equipment maker that has now shifted its business focus towards renewable energy, that contributed 94% of its Rs.430 Cr revenues for the 18-month period ended December’09.

It is also focusing on grid connected solar solutions that is believed to be growing faster compared with standalone conventional solar systems.

Two months ago, it's board had approved change in the name of the company to XL Energy Ltd to reflect the new business model.

It reported big losses last year and approached the corporate debt restructuring cell given defaults on debt and interest

This was due to cancellation of large order from Spain in 2008 coupled with mark-to-market losses due to decline in raw material prices thereafter.

This led XL Telecom to go for debt restructuring by banks led by SBI. The restructuring scheme that was approved in December last year included repayment of loans in 32 installments beginning quarter ending September’11, reducing rate of interest for three year period, selling off wholly owned subsidiary Khandola Distilleries Ltd and the ethanol business in 2010.

The total cost of restructuring for lenders stood at 234.6 crore and the promoters were to bring in Rs 40 crore in two installments in FY 2010 and FY 2011.

It has also raised Rs.23.06 Cr by issuing 2.30 crore cumulative redeemable preference shares of Rs 10 each to banks.

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