Bhagyanagar India plans Rs 14cr buyback

Below is the edited transcript of his interview with Ekta Batra and Reema Tendulkar. Also watch the accompanying video.

Q: With respect to the buyback, which has been announced, how much cash are you all planning to deploy for this buyback? What the cash on the books is?

A: The total buyback would be about Rs 14 crore. We have the entire cash available, either in liquid funds or otherwise.

Q: What the promoter holding would look like at the end of the buyback?

A: We had approximately 67% before the buyback. If we complete the entire buyback, it would go up to 71%.

Q: It does appear that the company has been generating a fair amount of cash because you recently also completely repaid your FCCBs. Now you have got enough cash to go ahead for a buy back as well. Could you tell us what the cash generation now stands at on an annual basis?

A: The cash generation is approximately in the region of Rs 15-20 crore annually. We do not have any capital equipment deployment. There is no major expansion. Right now, we are going through expansion of 6,000 tonne for our copper project which would require not more than about Rs 3 crore. So, we thought this would be a nice time to go for a buyback.

Q: What sort of capex you have lined up? How exactly would you be funding it? When would it come on stream?

A: The total capex would be only about Rs 3 crore to take us to a capacity increase from 15,000 tonne to 21,000 tonne of copper refining and auto components manufacture.