Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
12,086.70114.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

IT services provider Rolta India to raise $250 million in Singapore

Rolta India, a Mumbai based IT services provider, is on a road show in Singapore to raise Rs.1100 crore by selling bonds denominated in Singapore dollar bonds.

, ET Bureau|
Updated: May 09, 2013, 09.52 PM IST
0Comments
MUMBAI: Rolta India, a Mumbai based IT services provider, is on a road show in Singapore to raise Rs.1100 crore by selling bonds denominated in Singapore dollar bonds, which some analysts say may have to pay over the odds given the company’s standing.

The funds to be raised at $250 million is far higher than the market capitalisation of Rolta which is at $179 million, or Rs.973 crores.

“They are using it for refinancing their existing debt,” said an official from one of the banks involved in the issue, “So it is not that they are increasing their debt. The pricing may be in the range of 9.5 to 10.5%. In these volatile markets, 250(million) looks a bit difficult, but their profit margins are solid, so we will have to see.”

Rolta India is rated BB- by S & P Ratings and similar rated bonds are trading in the range of 5-7%, though the volumes traded are not very significant in these category of Indian bonds.

In January this year, government-backed Indian Oil Corp raised about Singapore $400 million at 4.10% for 10-year bonds and private lender ICICI Bank raised about Singapore $225 million at 3.65% for seven-year bonds in the same month.

Seven Indian companies have borrowed about $1.3 billion from the Singapore dollar bond market,this calendar year, up from $728 million raised through similar bonds between August and December 2012, data from Dealogic shows

Apart from Tata Group companies and Indian Oil Corp, it has mostly been the Indian banks like Exim and ICICI Bank that have tapped these markets to access funds for their overseas operations.

The latest company to tap the Singapore dollar bond market is TML Holding, a wholly owned subsidiary of Tata Motors which has raised about $350 million Singapore dollars through five year bonds at 4.25%.

Also Read

Facebook caught in crossfire of Singapore's 'fake news' law

No unconditional jobs under CECA, says Singapore's Minister

VC investors make a beeline to Singapore

Singapore, India air forces hold joint training exercise

Allcargo’s European arm buys logistics firms in HK, Singapore

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service