Everest Kanto Cylinder

Everest Kanto Cylinder Ltd on October 03, 2007 has announced the launch of its FCCB Issue to raise US$ 35 million. The company will issue Foreign Currency Convertible Bonds Due 2012. The proceeds of the issue will be used by the company for import of plant and machinery for its operations in India, investments in its subsidiaries/joint ventures outside India, for potential acquisitions outside India and for such other purposes in compliance with the applicable guidelines issued by the Reserve Bank of India (RBI) and the Government of India. The bonds will be convertible into the company ordinary shares, quoted in Indian Rupees.

The bonds are expected to be zero coupon and will carry a yield to maturity of 7.25% per annum. The conversion price is expected to be set at a premium of 30% over the closing share price of Rs 233.35 of the company on the Bombay Stock Exchange on October 01, 2007. The initial conversion price is fixed at Rs 303.36 per share in accordance with the relevant pricing norms prescribed by the Ministry of Finance, Government of India.

The Bonds have been priced today and closing is expected on or about October 10, 2007. The Singapore Stock Exchange has given in-principle approval for the listing of the Bonds. Citigroup Global Markets is the Sole Lead Manager for the offering.

Commenting on this Mr. Prem Khurana, Chairman and Managing Director, of the Company said, "The positive response to the issue reflects the confidence that global investors have in the Company and its position in the CNG Industry