Strides Arcolab has redeemed US$ 34 million Foreign Currency Convertible Bond (FCCBs), on the due date. The company had originally raised US$ 40 million FCCBs in 2005 and has bought back US$ 6 million during the year 2009. The total payout for redeeming the bonds was US$ 46.50 million as the Bonds were redeemable at a premium of 136.78 per cent. The Stride scrip went up by almost by 7 per cent on Bombay Stock Exchange to Rs 365 after the announcement.
The company now has outstanding FCCBs worth US$ 80 million out of the US$ 100 million raised in 2007. The US$ 80 million FCCB has an initial conversion price of Rs 461.553 per share, and if not converted before June 27, 2012, are redeemable at a premium of 145.058 per cent.
Commenting on the development, T S Rangan, Group CFO stated, "The company has diligently planned the redemption thereby reiterating its commitment in securing the interest of the investors. We take this opportunity to thank the bond holders for the confidence reposed on us."
The company's standalone net sales improved to Rs 784.74 crore during the year ended December 2009 from Rs 661.91 crore in the previous year. Its net profit has taken quantum jump and touched to Rs 105.51 crore from Rs 6.13 crore in the last year. Its consolidated net sales reached at Rs 1328 crore and it earned a consolidated net profit of Rs 109.68 crore.
Bangalore-based Strides Arcolab, develops and manufactures a wide range of IP-led niche pharmaceutical products including sterile injectables. The company has 14 manufacturing facilities across six countries, including its joint venture with Aspen in India. It has a marketing presence in over 60 countries.