Aban Offshore to raise $400 mn via FCCBs, GDRs

The Dollar Business Bureau

Chennai based drilling contractor, Aban Offshore, is in talks to raise long-term funds up to $400 million through Global Deposit Receipt (GDRs) and Foreign Currency Convertible Bonds (FCCBs).

In addition, the company has plans to issue equity-related securities worth Rs.2,500 crore via qualified institutional buyers (QIB). The company has received nod from the board members for the issue of FCCBs, GDRs, ADRs, etc. to raise these funds.

Meanwhile, the board members have also approved for the re-appointment of two Deputy Managing Directors, P Venkateswaran and C P Gopalkrishnanm, for a tenure of five-year each.

The net profit of the company has increased by 11% q-o-q and about 783% y-o-y to Rs.104.90 crore, however, the consolidated net loss of the oil exploration company widened for the second straight quarter.

The reason behind the losses was the weak performance of subsidiaries amid the declining international crude oil prices. The loss increased to Rs.119.80 crore for the quarter ended March 31, 2016, as compared to Rs.88.73 crore of the preceding quarter.

The consolidated net sales decreased by 14.2% from 733.6 crore to Rs.629.3 crore in Q4 FY2016.