highpremium-indian-cb-has-to-be-reoffered

High-premium Indian CB has to be re-offered

Barclays concedes part of its fee as infrastructure play Jaiprakash raises $300 million for cement production and the construction of a new power plant.
Jaiprakash Associates, an Indian builder of large infrastructure projects, has raised $300 million from the sale of an aggressively priced convertible bond issue that had to be re-offered before investors were willing to put up the money.

The repeat issuer in the CB market was aiming for a conversion premium as high as 50%, but had to settle for a bottom-of-the-range 45%, which was no great surprise given that the share price is up 120% in the past 12 months. However, the premium was fixed over yesterdayÆs volume-weighted average price of Rs8.54 $0.21, which ended up being significantly higher than the Rs8.39 close as the share price slid 3.2% after the launch of the...
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