How Virendra Mhaiskar plans to take IRB to the next level

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How Virendra Mhaiskar plans to take IRB to the next level

Virendra Mhaiskar, the chairman and managing director of CNBC-TV18, speaks about IRB Infra's future funding, expansion, working the Indian system and diversification on the CNBC-TV18 show India Inc Gen Next

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Q: What is the current debt position and what are you comfortable with at this point in time?

A: At the moment the outstanding debt is around Rs 2,700 crore and the networth is around Rs 1900 crore. So in terms of an infrastructure company we are very-very comfortable in terms of our leveraging. When we have all the projects getting rolled out the net debt at that time maybe after four years on the basis of present portfolio would reach around Rs 5500 crore but the networth also at that time would be considerably higher and I do not think the debt equity ratio even at that time would be more than 1.6.

Q: You have an enabling resolution to raise about Rs 1200 crore. You weren't quite sure when you would do it or what instrument you would use - have you made up your mind on that?

A: No yet but one thing for sure which looks apprehend now is that we will not go for that entire Rs 1200. The way it unfolds is that it was more of an enabling resolution to look at more projects as they come in. As far as the projects that we have won already we are well here to make the requirements on the equity side for that.

We did the resolution in August and now we are nearing March and we would be having more projects coming in hopefully in the next year now. So we would have one more year to add in terms of execution and for accruals to get in. So overall size would now reduce and I think we would not be raising more than RS 600 crore.

Q: But do you now have a timeline by when you actually?

A: No timeline.

Q: And no instrument either yet?

A: It could most probably be a qualified institutional placement (QIP) but no timing as such yet decided.

Q: Where do you see yourself going from here because you are the largest BOT player in the country, you got about 16 projects, you are still waiting for some of them to be actually operational, debt about Rs 2700 crore - where do you see yourself going from here?

A: I think we would like to build a pan-India presence with at least 5,000 kilometers under us.