Sujana Tower eyes to report 4-digit figure for next quarter

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Sujana Tower eyes to report 4-digit figure for next quarter

Kamesh Yalamarty, MD of Sujana Tower, in an interview with CNBC-TV18's Gautam Broker and Latha Venkatesh, spoke about the company's recent plans on fund raising and how would it help the company going forward.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Sujana Towers See previous management interviews See what other Experts & Brokerages are saying about Sujana Towers Sujana Towers BSE | NSE 29/05/12 Are Mutual Funds betting on Sujana Towers?

Kamesh Yalamarty, MD of Sujana Tower , in an interview with CNBC-TV18's Gautam Broker and Latha Venkatesh, spoke about the company's recent plans on fund raising and how would it help the company going forward.

Below is the verbatim transcript of the interview. Also watch the accompanying video.

Q: Your stock has been doing well in the past few sessions. Has there been any progress on the fund raising that Sujana Tower has probably undertaken? Have you spoken to any investors? Is it in the stage of being finalised?

A: We have informed our investors through your media last time that we are examining various avenues for the fund raising. We should be able to close zero-in on a certain fund raising by this 30. W should be able to report it within the next board meeting.

Q: Will it be an equity instrument, FCCB or QIP?

A: It's a mixture of two. I will not be able to disclose the details, unless we discuss it and take a call on that in the board. In all probability that's a fortnight away.

Q: What is the amount of money that you have been wanting to raise?

A: It's in two trenches at about USD 100 million.

Q: Is the purpose of this money for your tower facility in Guwahati?

A: A part of it or a majority of the amount would be going for tower facility which is coming up within the state of Assam and for our long-term working capital requirements. We are taking a lot of calls in the power transmission EPC sector. We are expecting the Tower order book to be very bullish in the next quarter.

Q: Your order book was about Rs 850 crore plus in the domestic side and export of around Rs 100 crore. What is it now?

A: We are around Rs 940 crore as of today. Hopefully, we would be able to report a four-digit figure for the next quarter. There are two-three major contracts are in the offering.

Q: How much of an equity dilution are you comfortable with?

A: As of now, the promoter group holds 54-55% post conversion. We may be 1% off this way or that way. At this level, the promoter group should be comfortable, whereas in Sujana, the prompters and operations are totally differentiated into the ownership and offer. I would not be able to comment on how much the promoter will be comfortable.

Q: You mentioned your fund raising will be either through an FCCB or GDR and EDR or QIP. Since these are equity instruments, how much more will your total share capital increase? What will be the extra fresh airs that you may issue?

A: There would be premium built in. Premium over the market price would be naturally built in such transactions. Some of their warrants due for conversion are already converted. Even after this FCCB issue, the promoter shareholding will remain at the same level. If you take the post warrant scenario, promoters would have it at about 54-57%.