Let's not forget that CCD's are treated as equity by monetary authorities in India...because of the "compulsorily convertible" prefix to debentures.They were issued at a presumed market cap well in excess of actual market cap at the time, in exchange for a high rate of interest to be paid to Piramal. Swings and roundabouts that made sense for FND at the time as it highlighted how undervalued FND was compared to peers in India. Now that a couple of acquisitions have gone through, and the timeline to IPO is looming, it makes sense to restructure to zero coupon debentures (though still compulsorily convertible, as that helps drive the pre-IPO NPAT numbers. As does the raised ATM interchange fee.
Sounds like a robust strategy with eyes firmly on the intermediate goal: a material liquidity event for shareholders.
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