Akhil Jindal, director of Welspun Group denies the ban to raise money from the capital market. The net debt is currently at Rs 2,500 crore against their networth of Rs 5,000 crore. They aim to bring it down to below Rs 1,000 crore in 3 years which is at 0.23 of debt equity levels and that is quite comfortable. They intend to wait for the right time to buy back some of the FCCB bonds.
As per him the Rajiv Gandhi equity scheme is structurally a very good move and can bring in close to Rs 150,000 crore annually into the market. Welspun as a group with leadership and global positioning is confident of continuing to do well in Q 4 too despite competition from Indian players.
Below is the edited transcript of his interview on CNBC-TV18. Also watch the accompanying video.
Q: With this ban getting revoked and your ability to access capital markets, will you be accessing capital markets? You have quite a bit of debt of 2,700 crore. Are there any thoughts at all in terms of raising equity?
A: There was never a ban on the company to raise the money from the capital market. In fact, we have recently done equity participation from Apollo. There was a ban on some of the promoters of the company where they could not buy or sell the stake or do any market activity for the last two years. So I am happy to say that this ban is over and it has established the corporate governance and ethics of the Welspun Group. I am happy with this news.
Q: Give us a sense of what your current debt is. How much do you want to pull it down to and what would be the method to pull it down?
A: As far as Welspun Corp is concerned our net debt is in the range of 2,500 crore against our net worth of almost 5,000 crore. The gearing is just 0.5 so I don