To raise $125m for acquisitions, capex: BSEL Infra

Here is a verbatim transcript of an exclusive interview with Dharmendra Raichuria on CNBC-TV18. Also watch the accompanying video.

Q: You have got board approval to raise funds upto USD 125 million, that comes to about Rs 560 crore. Your marketcap is Rs 107 crore, you are raising a whole lot of money?

A: The planning is to raise the money in span of around 18 months time from now. Our immediate need is around USD 30-40 million which will be utilized for the acquisition of the new projects. This approval will also consist of our demerger plan because few weeks back we have announced a demerger plan which consists of demerger of two more companies, BSEL Hotels Ltd and BSEL International Ltd. So part of the funds will be raised in those companies as well for a development of our existing projects in hotels.

Q: Even then your marketcap is Rs 107 crore today and even if I took only USD 40 million that is Rs 180 crore. What will be the equity dilution be in that case? Are you planning to issue as many shares as are already issued in the market or even more maybe?

A: It depends on the market condition on the premium and what we are getting from the investors’ feedback. Presently the promoters will be increasing the stake going forward. So dilution will be taken care of.

Q: How much are the promoters planning to buy?

A: Presently the promoters’ stake is around 25%. Every year we will be having 5% purchase from the promoters.

Q: Looking to your financials, the revenue base is quite low. Your Q3 consolidated revenues is just about Rs 3 crore?

A: It is because of the UAE operations, everybody knows that in UAE, the market is going down and now it has little bit softened. Going forward we are seeing that UAE markets will be doing well and in the next few quarters we will be getting good revenues from UAE.

Q: What kind of revenues are you targeting in FY11?

A: Presently, we are into corporate governance period because we have already announced the results and everything. So I will not be able to disclose the data.

Q: How much does the hotel business contribute and what about the balanced business? When you demerge what will be the sizes of the two businesses?

A: I can say 40% would be the main parent company BSEL Infrastructure, 20% will be the hotels and 40% is the international.