Ranbaxy Laboratories Ltd has successfully launched and priced an offering of US$ 400 million zero coupon foreign currency convertible bonds (FCCBs) (excluding an overallotment of upto US$ 40 million additional bonds).

The bonds have a tenor of five years and one day and are convertible into equity shares at a premium of 60% to the BSE closing price closing price of Rs 447.70/- as on February 15, 2006. The yield to maturity of the bonds is set at 4.8% per annum. Citigroup, Deutsche Bank, Morgan Stanley and UBS acted as the book-runners to the transaction, states the company release.

Malvinder Mohan Singh, managing director & CEO, Ranbaxy, said, "This capital raising exercise, the single largest by an Indian healthcare company, represents an important milestone for Ranbaxy. We are delighted that international institutional investors continue to support Ranbaxy's business strategy and its capital raising plans. The proceeds from the offering will be used towards potential acquisitions and to finance our capital expenditure programme."