Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Pidilite Set for Record in Mumbai on Debt-Coversion Speculation

June 7 (Bloomberg) -- Pidilite Industries Ltd. headed for a record close on speculation that more bondholders of India’s biggest adhesives producer will offer to convert the debt into shares, reducing the company’s cash outgo to meet redemptions.

The stock rose 1.2 percent to 165.7 rupees at 2:29 p.m. in Mumbai, bound for the record close since its debut in January 1994. More than 980,000 shares, six times the three-month daily average, changed hands, data compiled by Bloomberg show.

“The stock is reacting to the buzz that the company may receives more offers from bondholders to convert their debt to equity,” said Nilesh Karani, assistant vice president of research at Magnum Equity Broking Ltd. in Mumbai. “Pidilite will save on cash if that happens.”

Pidilite issued 116,462 shares to a bondholder who opted to convert three bonds, each worth $100,000, into shares, the company said in an exchange filing yesterday. The company has 369 foreign convertible bonds worth $36.9 million outstanding, it said. The company must pay $139.37 for every $100 borrowed if the debt sold in December 2007 is not converted to shares, according to data compiled by Bloomberg.

Company Secretary Savithri Parekh declined to provide further details.

To contact the reporter on this story: Ameya Karve in Mumbai

To contact the reporter on this story: Hemal Savai in Mumbai

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.