Pidilite Industries issues FCCBs

Pidilite Industries Ltd (PIL) has informed that the Company has launched on November 03, 2007 an issue of USD 40 million zero coupon foreign currency convertible bonds due 2012 ("Bonds"). PIL has decided to issue the Bonds inter alia, for (i) capital expenditure in accordance with applicable law, (ii) international acquisitions, and (iii) any other use as may be permitted under applicable law or regulations, from time to time. The Bonds will be convertible into equity shares of PIL, quoted in Indian Rupees.

The five year zero coupon Bonds have an yield to maturity of 6.75% per annum (calculated on a semi-annual basis), and are redeemable in 2012 i.e. after 5 years and 1 day from closing date. The Bonds are convertible into equity shares of the Company at any time after January 09, 2008 until November 23, 2012 at a price of Rs 256.035 per Share which represents a premium of 30% to the closing price of the equity shares of PIL on the Bombay Stock Exchange Ltd ("BSE") as of November 02, 2007. The Bonds will be issued at par and redeemed, if not converted into shares, at 139.37% of par on maturity.

Application will be made for the Bonds to be listed on the Singapore Exchange Securities Trading Ltd and for in-approval for the shares to be issued upon conversion of the Bonds to be listed on the NSE and BSE. The Issuer has already obtained the approval of its shareholders by a special resolution passed on August 29, 2007 for the issue of the Bonds and for issue of the Shares to be issued upon conversion of the Bonds.

JPMorgan Securities Ltd is the Lead Manager Underwriter and Sole Bookrunner for the offering.