Promoter stake to be 31-32% post dilution: Granules India

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Granules India is making a preferential allotment to ISP Investo. C Krishna Prasad, Managing Director of Granules India gives details.

He says that post this dilution, the promoter holding would come down to about 27%. But a number of warrants are pending and with the warrants in place, it would be around 31-32%.

Excerpts from CNBC - TV18's exclusive interview with C Krishna Prasad:

Q: How much are you allotting to ISP and at what price?

A: This is about 14.95% of the equity of the company, which comes down to around Rs 105.50.

Q: Would that amount to about USD 5 million?

A: About USD 5 million.

Q: What would you use that money for?

A: This is part of the fund raising that we had planned some time ago. We have get an EGM Board approval for USD 20 million and this is going to be part of that.

Q: Post this dilution, what is the promoter holding like?

A: Promoter holding would come down to about 27% but a lot of warrants are pending, and with all these warrants in place, it would be around 31-32%.

Q: You have been talking about an acquisition in Europe. You have laid the timeline of about six months for finalising that. Is that still on course or have you revised your timeline and are we looking at the date coming close in terms of finalisation of that deal?

A: That is not moving forward at the pace, which we had expected it to. We are not really sure because the other party seems to be going a little slow.

Q: You are also believed to be in the race for Ranbaxy's Ireland unit. Where do things stand at this point of time?

A: We have made a bid and we have not heard from them.

Q: By when will you make that acquisition or announcing the same?

A: If we don't hear from them, we may just drop it.