Pharma Major Ranbaxy Laboratories said it has fully redeemed USD 440 million (about Rs 1,985 crore) zero coupon convertible bonds. In a filing to the Bombay Stock Exchange (BSE) the company said it has redeemed the convertible bonds,the maturity date for which is on March 18,2011. In 2006,the company had launched an offering of USD 400 million zero coupon foreign currency convertible bonds,with an option to allot additional bonds of up to USD 40 million. Zero coupon convertible bonds are debt instruments that pay no interest and can be converted into common stock of the issue at a certain price. The capital raising exercise was one of the largest by an Indian Healthcare company at that time. The bonds had a tenor of five years and one day and were convertible into equity shares at a premium of 60 per cent to the BSE closing price of Rs 447.70 as on February 15,2006. The yield to maturity of the bonds was set at 4.8 per cent per annum,the company had then said. Shares of Ranbaxy closed at Rs 468.55 on the BSE,up 0.26 per cent from its previous close.
