No outstanding FCCBs, debt at Rs 70cr: Bhagyanagar India

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No outstanding FCCBs, debt at Rs 70cr: Bhagyanagar India

Narender Surana, managing director, Bhagyanagar India speaking to CNBC-TV18 said there are outstanding FCCBs. However, the total debt on the books is nearly Rs 70 crore and turnover is in the range of Rs 250 crore.

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Bhagyanagar India repaid foreign currency convertible bonds (FCCBs) worth USD 14 million on October 11, 2011. Narender Surana, managing director, Bhagyanagar India speaking to CNBC-TV18 said there are outstanding FCCBs. However, the total debt on the books is nearly Rs 70 crore and turnover is in the range of Rs 250 crore.

Post repayment of FCCBs the company is now planning to do a buyback of approximately Rs 20 crore in six months from now.

The company is also enhancing the capacity of its copper smelting plant from 15,000 tonne to 20,000 tonne . This expansion is expected to be completed by December.

Below is the edited transcript of Surana's interview with CNBC-TV18. Also watch the accompanying video.

Q: We understand that you have redeemed a bit of your FCCBs on October 11, could you tell us how much and if there are any outstanding FCCBs now?

A: I am happy to inform that we have closed our FCCB payments of approximately USD 14.5 million. There is no outstanding FCCB. The total debt on the books is approximately Rs 70 crore and our turnover is in the range of Rs 250 crore.

Q: You also have plans to buyback a few of your shares, now that FCCB part is over could you tell us the plans with respect to buyback? How much will be the cash on the books and how much are you planning opt invest in the buy back?

A: We are starting the process of buyback now since the FCCB payment has been cleared. This was cleared on October 16, and we hope to do a buyback of approximately Rs 20 crore in the period of about six months from now.

Q: What kind of price would you be working with regards to buyback?

A: We will be buying these shares at the market price. We would definitely like to complete the buyback as soon as possible but we have a timeline of about six months.

Q: We understand that you have capacity expansion which is expected to be completed by December?

A: We are going through a capacity expansion of our copper smelting plant. This is being expanded from 15,000 tonne to 20,000 tonne. The plant and equipment is already in place in the factory and we hope to commission the plant by December.

Q: For this buyback do you have cash on the books?

A: Yes, we have cash deposits with various mutual funds.