Tulip IT raises $125mn in international markets

MUMBAI: Wireless-based solutions provider Tulip IT Services on Wednesday said it has raised 125 million dollar through issue of convertible bonds in international markets for funding expansion plans including overseas acquisitions.

The initial conversion price of the bonds was fixed at Rs 1,137.22 per share, which represents 35 per cent premium over weighted average price of Rs 842.38 on the National Stock Exchange, Tulip IT informed the Bombay Stock Exchange (BSE).

The convertible bonds are due in 2012 and the lead manager to the offer has an option to increase the issue size by an additional $25mn.

The company has decided to issue the bonds to be convertible into equity shares to meet capital expenditure in connection with the strengthening of telecommunications network, besides making overseas acquisitions.

Application would be made to list the bonds on the Singapore Exchange Securities Trading Ltd and for the shares to be issued upon conversion of the bonds on the NSE and BSE.

The closing of the bond issue would be conditional upon shareholders' approval.

Barclays Capital is the sole bookrunner and sole lead manager for the offering. State Bank of India and Bank of India are the Financial Advisors for the offering.

Shares of Tulip IT closed at Rs 806.60, down 4.88 per cent on BSE.