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Mar 19, 2010, 06.28 PM IST
In an interview with CNBC-TV18, Vinit Kumar, CMD of Temptation Foods spoke about the latest happenings in his company and sector.
Below is a verbatim transcript of the interview. Also watch the video.
Q: If you could just confirm to us what kind of fund raising plans you have at the moment and have you outlined the quantum of funds that you are planning to raise?
A: We primarily are looking at raising money through preference issue, which is in the vicinity of about Rs 50 crore and also through a rights issue, which should also get us in the vicinity of Rs 100 crore. However, this is subject to the company being able to raise capital. There is an outstanding order on the holding company of the company, which was passed June 4, 2009, which is currently under the process of being consented which we had filed a census application. Once that is allowed only thereafter we will be able to raise this money.
Q: So when are you expecting this issue to be resolved? Is there any timeline?
A: We have just finished an internal committee hearing with Sebi. I am given to understand it take between 30-45 days for that process to be completed.
Q: You mentioned funds to the tune of about Rs 150 crore. What sort of dilution are we looking at?
A: The right should obviously allow everybody—the existing shareholder to subscribe. The board level had considered 1:1 right roughly about Rs 40. So to the extent that there is an unsubscribed portion we have also informed the board as promoters of the company that we would be willing to take up that stake that we can increase our stake in the company.
Q: What are you looking to use these funds for?
A: We are trying to build a couple of new factories. We have an expansion plan of about Rs 300 crore, which would require an equity funding of about Rs 100 crore. We are looking to build units for frozen vegetables in Gujarat, Uttaranchal and southern part of Maharashtra in the Konkan belt—a lot of cold storages that we need to warehouse our own product. Essentially this will be organic investments green field that we are looking to put money into.
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