Sintex has made an announcement to the exchanges today that reads as follows:
Sintex Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on May 19, 2016, inter alia, to consider various financing options for a fund raising by the Company through the issuance of foreign currency convertible bonds and/or non - convertible debentures in and/or outside India and to form a committee of directors ("2016 Securities Committee") to implement such fund raising, including deciding the mode of issuance and nature of securities to be issued. It is also intended that subject to appropriate market conditions, the 2016 Securities Committee will open the offering of relevant securities and, subject to appropriate demand, decide the terms of the issuance of the securities (including pricing) on May 19, 2016.It basically means that they are planning for FCCBs all over again. It seems that they did not learn the lessons of 2008 well enough.
Further, the Trading Window of the Company pursuant to SEBI (Prohibition of Insider Trading) Regulations, 2015 read with Code of conduct to regulate, monitor and report trading by insiders of the Company will be closed for trading of Company's equity shares from May 16, 2016 to June 01, 2016.
Where do you expect strike price of fccbs to be issued?
ReplyDeleteI agree with you they haven't learned -- playing with capital structure !
The reason Plastiblends, Kingfa, Nilkamal, Sudarshan Chem, etc... though not directly comparable are at the top making highs when this is stuck at below 100 levels is due to capital allocation and poor decisions by the mgmt. I like Sintex as a business, but it lacks the standard of making it to a portfolio stock, just because of its attitude
ReplyDeleteHi Abhishek,
ReplyDeleteCould you please update your portfolio?