LML does something involving money

From HindustanTimes:

Two-wheeler manufacturer LML Ltd said on Thursday that it has allotted about 27 lakh equity shares to Merrill Lynch Capital Markets Espana upon conversion of Foreign Currency Convertible Bonds (FCCBs). At the meeting held today the Financial Restructuring Committee of Directors allotted shares of Rs 10 each at a premium of Rs 21.10 per share upon FCCB conversion, the company informed the Bombay Stock Exchange.The shares were allotted upon conversion of 2000 FCCBs Series B of 1,000 dollars each aggregating to $2 million, LML added.

So make of that what you will.

9 thoughts on “LML does something involving money”

  1. Put that in your pipe and smoke it! Where are all those naysayers now that said they couldn’t pull it off with a series B? huh?

  2. Do you understand that information? What I gather is that LML now owes some spanish guy 27 pocket bikes to use as pit bikes in the british version of nascar, or somethin’ like that.

  3. I have no idea. Indian financial news makes as much sense to me as cricket. On top of the typical “we’re going to overuse jargon to alienate the proletariat” scheme, they throw in insane units of measurement like “crore” and “lakh” just to make it extra confusing.

  4. Japanese and Chinese have a special word for 10,000 (“man” in Japanese), and they express a million as (hyakuman) or “hundred-tenthousand.’

  5. hi, great blog. if anyone cares, I think i’ve figured out what this item means.

    LML issued “Foreign Currency Convertible Bonds” to Merrill Lynch Espana. This probably means Merrill lent a boatload of money to LML and the terms of that loan gave Merill the option to “convert” the IOU into LML stock (“equity shares”)–in effect, to get repaid in stock instead of cash. Now that LML is hitting hard times and can’t repay the loan ( “Financial Restructuring” is a euphemism for bankruptcy), Merill is exercising its right to convert the worthless IOU into slightly less worthless stock. (By coinicidence, similar factors may have been at work in the Piaggio IPO–i read somewhere the theory that one reason for the IPO was so Piaggio’s lenders could cash in some P stock they owned)

    In short, LML gets out of a debt, and Merrill Lynch Espana now has an ownership share of LML. I think Merrill would’ve preferred the 27 pocket bikes.

    –tom

  6. hi, great blog. if anyone cares, I think i’ve figured out what this item means.

    LML issued “Foreign Currency Convertible Bonds” to Merrill Lynch Espana. This probably means Merrill lent a boatload of money to LML and the terms of that loan gave Merill the option to “convert” the IOU into LML stock (“equity shares”)–in effect, to get repaid in stock instead of cash. Now that LML is hitting hard times and can’t repay the loan ( “Financial Restructuring” is a euphemism for bankruptcy), Merill is exercising its right to convert the worthless IOU into slightly less worthless stock.

    In short, Merrill Lynch Espana now has an ownership share of LML. I think they would’ve preferred the 27 pocket bikes.
    –tom

  7. And I forgot, Japanese and Chinese also have a special word and character for 100 million, “oku” in Japanese. Since one Japanese Yen is *roughly* equivalent to a penny (1 to 1.16 right now), you just move the decimal point over two to get an idea of what something costs in dollars. So if something costs Â¥54,000, it’s really more like $500. Therefore a hundred million Yen is really more like one million dollars and a 10,000 yen bill is kind of like a Benjamin.

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