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In a move to cancel its total FCCB's worth $35 mn, Simbhaoli Sugars has bought back FCCBs worth $1.5 Mn, completing 94% of the Buyback. Previously, Simbhaoli Sugars had repurchased around $29.61 Mn in parts ( reported here on Dealcurry), making a gain of Rs. 10.33cr. The company had issued the bonds in March 2006 to part finance the growth plan of Rs 4.60 bn of the Company, involving enhancing and setting up of fresh sugar, alcohol and power capacities at its sugar plants in the years 2006 to 2008. With a maturity value of 5 years, the bonds were redeemable with a 37% premium on principle amount on maturity. Earlier this year, the company announced that it planned to halve its debt burden, which stood at Rs.340 cr, over the period of 12 months. The company intended to repay the debt by internal cash generations and was also considering an equity issue. It had generated Rs70 crore cash in 2008-09 and hopes to generate over Rs100 crore in the current year owing to the prevailing high sugar prices (over Rs. 30/kg). The company's debt to equity ratio was 2.7:1 as of September 30, 2009. Simbhaoli Sugars posted a PAT of Rs. 71.7 cr in year ending September 09. |
