Websol Energy at 20% UC

Websol Energy had closed yesterday at Rs.35.15 and today it breached the 20% upper circuit at Rs.42.15. Its 52-week high stands at Rs.62.20.

The stock is in the news after the company informed that it had applied to RBI for Restructuring of outstanding FCCBs and the same has been approved by RBI subject to certain conditions.

The company has stated that after restructuring, the principal value of outstanding FCCBs will be settled at US$12 million, down from $16.8 million earlier.

There is a complete waiver of accrued interest, including the penal interest, totaling $11.68 million which was on account of the default. This is a very big deal and that market is obviously more happy with this development.

The conversion price is now at Rs.62/share v/s regulatory floor price of Rs.52.86/share.

The company has said that unless the bonds have been previously redeemed, repurchased and cancelled or converted, the company will redeem bonds on May 1, 2021 in cash at 128% of principal value of bonds at their accreted principal amount based on a yield of 5% per annum compounded semi-annually.