*Prajay Engineers Syndicate Ltd* has passed an enabling resolution that would help it raise up to $150 mn by issue of FCCBs. The company will use the funds to finance its expansion plans.
Prajay Engineers also plans to increase authorized share capital from Rs 90cr to Rs 250cr. Transaction Note *Prajay Engineers Syndicate Limited* develops real estate in India through two segments- Construction and Development of Property and Hospitality Hotels and Resorts. The Group operates three properties under the brand name '*Celebrity*' - Celebrity Holiday, Celebrity Club and Celebrity Boutique Hotel. It may be recollected that in January 2009, the company reported a loss in its Q4 FY09 results against expectations of a profit. The company "lost" records for a project worth 40% of its annual revenues at the site office. The auditors in their report have stated that they were not able to verify the books and records relating to income of Rs1437.71m and relevant construction cost of Rs752.654m The company had raised $60mn by way of FCCBs in 2006 which were listed on BSE. The bonds were convertible anytime till June 2011 at a price of Rs 208. But the company had converted the bonds into equity shares before 31 March 2008. In Feb 2008, *Goldman Sachs*,* Deutsche Bank* and *CLSA Mauritus* invested in the company and *Lehman Brothers*,* ABN Amro *and *Dexia Investor Services* converted their FCCB holding into equity. The company's stock is now trading at Rs 28. A certain *Merlin Securities* holds 13.44% stake in Prajay. Merlin is a US-based company that provides prime brokerage services to hedge funds. Goldman Sachs and JP Morgan are clients of Merlin Securities. Off-late investors have been exercising their option to convert bond holdings into equity – to relieve the companies of the debt pressure on maturity. * Amtek Auto*, *Subex*, *Dolphin Offshore* and *Vivimed Labs* are a few cases where foreign investors have bought stakes in the past few weeks by converting FCCBs into shares. Earlier this month, NDMR BV has picked up nearly 15% stake in Amtek Auto through FCCB conversion. Barclays Capital also acquired 6% in Subex Ltd through conversion of a part of the FCCBs issued in 2007. -- Regards Hardik Shah -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
