Shri Lakshmi Cotsyn

Shri Lakshmi Cotsyn Ltd has informed that the Board of Directors of the Company at its meeting held on September 20, 2007, has considered the matter of allotment of US$ 10 million Zero percent Unsecured FCCB due 2012 (subject to over allotment option for upto US$ 5 million bonds) convertible into Equity Shares of the Company.

The Board of directors has allotted 100 Nos Zero coupon Unsecured FCCB of US$ 1,00,000/- per bond amounting to US$10 millions.

In this regard the Company has issued the following press release:

Shri Lakshmi Cotsyn Ltd announces the successful issuance of US$ 10,000,000 zero coupon unsecured foreign currency convertible bonds. The bonds have a maturity of 5 years and are convertible at a price of Rs 150 which represents a premium of 18% over the current market price.

Silverdale Services Ltd, London, was the sole Lead Manager for the offering and Axis Bank Ltd was the financial advisor to the issuance.

The Company has a de-risked product portfolio, it specialises in the manufacture of technical and safety textiles like fusible interlining, PU coated nylon, fire retardant fabric, bullet proof jackets, anti-infra-red, and high altitude clothing besides large capacities in shirting & suiting, and expansions into the manufacture of terry towels, home furnishing, denim, bottom-weight fabric and garments. The Company is an ISO 9001-2000 quality management system certified Company and also enjoys the status of a star export house.

The Company is led by a technocrat (Dr. MP Agarwal, a doctorate in textile costing), and has significant cost advantages, due to in-house textile auxiliary chemical plant, captive power plant and backward & forward integration. The Company has a joint venture with Armet of United Kingdom for armoring vehicles to provide 360° protection - a first of its kind in India. The JV is expected to leverage on existing business synergies and serve as a key impetus for long-term growth.

The net sales of the Company for the period ended March 2007 was Rs 3.78 billion (CAGR of 30% in the last three years) with EBIDTA and PAT margins of 14.15% and 6.97% respectively.

Dr. M P Agarwal, Chairman and Managing Director of the Company said: "We are delighted with the response of global investors to our issuance. They have appreciated the intrinsic cost advantages, technological prowess and tremendous growth opportunities".