India's GTL Infrastructure on Thursday confirmed that its bondholders have given a nod to the company's plans to convert 35 per cent of its $319 million debt into equity.
According to a recent statement by the GTL tower operator, the company has plans to convert the US$-denominated notes into shares at a cost of Rs 10 each, which represents around 23 per cent premium to the present market price.
GTL chairman Manoj Tirodkar said that the thriving completion of the restructuring of foreign currency convertible bonds (FCCBs) and rupee debt demonstrates bondholders' belief in the management of GTL Infrastructure.
The company aims to convert the debt into equity sometime later this month.
The remaining 65 per cent of the debt may also be converted into equity by converting it into shares in the next few months. The conversion price will reportedly be Rs 12.64 apiece should investors demand new bonds.
GTL Infrastructure has suffered losses in thirteen of the past fifteen quarters. It is going to join around eight other companies in India that have decided to revamp their convertible notes amid sluggish economic growth and increasing costs of borrowing.
Stock in GTL Infrastructure gained around 7 per cent to 8.35 a share on Thursday, with nearly twelve lakh shares changing hands, up from the 5-day average volume of 2.5 lakh shares on Bombay Stock Exchange (BSE).