Bangalore, March 24: McDowell and Company Ltd, the flagship of the UB Group, today announced that it has raised $230 million from twin issues of GDRs and FCCBs.

While the company raised $130 million through global depository receipts (GDRs), the foreign currency convertible bonds (FCCBs) mopped up $100 million.

Addressing a hurriedly-called press conference, Ravi Nedungadi, UB group chief financial officer, told reporters that both the issues have been oversubscribed.

The funds raised from the twin issues would be partly utilised towards repaying a portion of debt incurred to finance the Shaw Wallace acquisition.

“The funds will also be utilised for strategic initiatives and/or acquisitions and for other general corporate purposes,” Nedungadi said.

The price of the global depository share (GDS) has been fixed at $7.4274 per GDS. Two GDS’ comprise one equity share at a price of Rs 660 per equity share of Rs 10 each. The price is at a 1.04 per cent premium to the average closing price of the company of the past five trading days.

“This has been done to ensure transparency,'' he added.

The GDR issue has been oversubscribed almost twice.

McDowell will issue 17,502,762 GDS aggregating $130 million and the application has been sent to the Luxembourg Stock Exchange.

The FCCBs are issued at a premium of 30 per cent to the GDR reference price, with a coupon of 2 per cent per annum, payable in arrears semi-annually and an yield-to-maturity of 6.65 per cent, it was stated.

The FCCBs will be listed on the Singapore Stock Exchange, Nedungadi said.

CLSA Asia-Pacific Markets and Citigroup acted as the sole global coordinator and book runner for the GDR and FCCB offerings, respectively.