About 42.2mn CARS bonds were converted into Tata Motors ordinary shares at the premium of Rs119.34/share on the original issue price of Rs181/share.
June 12, 2012 is the cut of data for all bondholders to either convert of redeem
For the rest of bondholders, we estimate that at current Rupee – Dollar rate of 53.72; the breakeven for original bondholders are estimated at Rs314/share
Several bondholders who are not original holders may choose to convert as they may have bought the bonds at a discount.
Higher percentage of CARS bonds conversion is a long term positive for the company as it would save the expensive financing cost of 473mn total bond issue.
The action of bondholders may determine stock price performance also as several bondholders may choose to exit immediately thereby impacting the stock price.
....more info
June 12, 2012 is the cut of data for all bondholders to either convert of redeem
For the rest of bondholders, we estimate that at current Rupee – Dollar rate of 53.72; the breakeven for original bondholders are estimated at Rs314/share
Several bondholders who are not original holders may choose to convert as they may have bought the bonds at a discount.
Higher percentage of CARS bonds conversion is a long term positive for the company as it would save the expensive financing cost of 473mn total bond issue.
The action of bondholders may determine stock price performance also as several bondholders may choose to exit immediately thereby impacting the stock price.
....more info