See revs hitting Rs 1000cr over next 3 yrs: Country Club

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See revs hitting Rs 1000cr over next 3 yrs: Country Club

In an interview with CNBC-TV18, Y Rajeev Reddy, Chairman, Country Club spoke about the company's fund raising plans and its growth prospects going forward.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » RELATED NEWS Country Club okays pref allotment of warrants to promoters ALSO READ See latest News about Country Club (I See previous management interviews See what other Experts & Brokerages are saying about Country Club (I BSE | NSE 01/01/70 Are Mutual Funds betting on ?

Family club chain, Country Club India has issued 3 crore convertible warrants. The warrants are convertible into one share at Rs 25 per warrant. The company intends to raise between USD 125 million and USD 150 million or its rupee equivalent as part of its fund raising plans. It also plans to raise funds via QIPs or FCCBs or ADRs & GDRs. Recently 76.94 lakh shares were allotted on March 30 at Rs 16.30. The company recently introduced a new product called Country Club fractional ownership.

In an interview with CNBC-TV18, Y Rajeev Reddy, Chairman, Country Club spoke about the company's fund raising plans and its growth prospects going forward.

Here is a verbatim transcript of the interview. Also watch the accompanying video.

Q: If you could first confirm to us, how much by way funds are you looking to raise and how much of equity dilution would that lead to?

A: We are looking to raise anywhere between USD 125 to USD 150 million and we are looking at raising it in tranches. So I think the dilution over a period of time will be there but definitely not to a great extent.

Q: Your market cap at this point in time is Rs 153 crore. If you are raising Rs 550 crore then that's a substantial amount of market cap increase. When you say tranches do you mean several tranches in FY11 itself? What is the kind of time table for money raising?

A: It may be within one year. If you look at it, you were talking about the market cap, we have 55 properties in our companies list. Only one property in Dubai which we purchased at Rs 175 crore today that itself is more than the entire market cap put together. I mean it is really very surprising.

You should also know that while we have purchased the property for Rs 175 crore two years back, we have already raised more than Rs 120 crore only in the Middle East markets. Infact with a gross operating profit of 50% you can just imagine the amount of opportunity that is there in the Middle East.

We are trying to expand in Oman, we are trying to expand in Abu Dhabi, we are trying to expand in Bahrain and other Middle Eastern areas including Kuwait.

So what I am trying to tell you is there is no relevance, there is no correlation between the market cap and the value of our properties. I have just given you one example of one property which is generating so much hype and so much attention and so much revenue only in the Middle East.