Convertible by Gujarat Ambuja Cements re-opens Indian market

The first convertible from India in three years was launched to an enthusiastic audience yesterday (Monday).

Taking the market by surprise at London's opening, Morgan Stanley Dean Witter launched a $90 million credit-enhanced convertible for the country's fourth largest cement manufacturer and its most profitable. Seven hours later at 3pm GMT when the deal was priced, books were said to stand eight times oversubscribed and the underlying stock up rather than down on the day, closing Rp173.7 $3.75 against Rp169 on opening.

Within about 10 minutes of news of this deal breaking, we had an order for $30 million, one banker enthuses. The investor in question didn't even need to see the terms. They simply thought Indian convertible, credit-enhanced, must buy.

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