Shringar Cinemas raises $ 20 million in FCCBs

MUMBAI: Shringar Cinemas Ltd. has raised $ 20 million through a Foreign Currency Convertible Bonds (FCCB), with a tenure of five years. The bonds are expected to be listed on the Singapore Stock Exchange. The issue, which opened on Friday post trading hours, received strong demand and garnered funds at an attractive rate.

The conversion of bonds have been structured so that 60% of the proceeds would get converted into equity shares at 32% premium (Rs. 90 per share) and the balance $8 million at a premium of 57% (Rs. 107 per share) to Friday’s closing price of Rs. 68.
The bondholders will be able to exercise the option of converting into equity shares after 30 days of allotment. The Bonds carry a coupon in the range of 0-0.5% and a YTM of 6.5-7.5%. Rabo Bank International was the sole manager and advisor to the issue.

Shringar Cinemas is currently on an expansion phase to increase the total number of multiplexes to 47 multiplexes comprising of 51,000 seats over the next 3 years from the existing level of 5 multiplexes. The proceeds from the FCCB issue will be utilised for expansion and modernisation of multiplexes and food court businesses.

Speaking on the occasion, Shravan Shroff, Managing Director, Shringar Cinemas Ltd. said, “We are very encouraged with the response that we have received. The FCCB funds will be used to finance the aggressive growth in the multiplex as well as the food court business. With initiatives such as these, we are confident of providing an enriching experience to both our customers and stakeholders.”