Board meet on Monday for decision on buyback: Gemini Comm

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Board meet on Monday for decision on buyback: Gemini Comm

Pradhyumna T Venkat, CEO of RFID and Energy from Gemini Communication, in an interview with CNBC-TV18's Latha Venkatesh and Gautam Broker, spoke about the recent happenings in his company and the road ahead.

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Pradhyumna T Venkat, CEO of RFID and Energy from Gemini Communication , in an interview with CNBC-TV18's Latha Venkatesh and Gautam Broker, spoke about the recent happenings in his company and the road ahead.

Below is the verbatim transcript of the interview. Also watch the accompanying video.

Q: The board is to consider a buyback. Is this a proposal of buyback by the company or from the promoters?

A: This is a company buyback that has being proposed.

Q: What is the rationale for the buyback? Is it cash utilisation or do you want to extinguish some of your equities to improve your EPS? What is the reason?

A: We have always felt that our share has been undervalued. We have been posting good results consistently over the last few quarters and expect the growth momentum to continue. It is just a sign of confidence on our stock that the company has proposed this. The board will meet on Monday to take a final decision on the way forward with respect to this.

Q: What is the cash on your books? How much may you set aside for this?

A: Whether it is 10% or 25%, the decision will be taken on Monday. Normally, the company buyback is either 10-25% of reserves. On Monday, we will be taking a firm decision.

Q: What will be the modus operandi? Will you just be buying from the market? Is it a market related buyback or will you set aside the amount and ask people to bid in?

A: We would be able to share those final details post the board meeting. All of that is being considered and discussed.

Q: Do you have any final thoughts on the PointRed telecom stake sell? Has it progressed? Are you still in talks with PE investors?

A: We are continuing our discussions with some of the PE companies who have shown interest there. Other than that, we are looking at other options or revenues to raise fund for our capex plans for the R&D and some of the expansion of the manufacturing facility that we are contemplating.

Q: Recently, one of your promoters pledged some more shares. What is the extent of pledged shares?

A: I wouldn't be able to comment on that. I am not sure on the source of that information.

Q: At the moment, what are the pledged shares on the records?

A: I don't have an official figure with me now. I am not sure the extent of shares that you are talking of. I would not be able to comment on the current one that you are referring to.