Will tap fund raising to support growth: Sujana Towers

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Will tap fund raising to support growth: Sujana Towers

Managing director of Sujana Tower Kamesh Yalamarty, in an interview on CNBC-TV18, spoke about the latest news coming out of his company and sector. He also spoke about the company's fund raising plans which he expects to announce next quarter.

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Managing director of Sujana Towers Kamesh Yalamarty, in an interview on CNBC-TV18, spoke about the latest news coming out of his company and sector. He also spoke about the company's fund raising plans which he expects to announce next quarter.

Below is a verbatim transcript of his interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee. For the complete interview watch the accompanying video.

Q: There were some rumors earlier in the year about partial or total stake sale plans. Are you looking at any kind of stake sale at all at Sujana?

A: As of now we are not looking into any kind of stake sale. As we are dynamically growing and extending our footprint globally, I cannot say what happens tomorrow. As of now promoters are not contemplating any stake sale.

Q: Are you not talking to any strategic or financial investor or a PE fund on any account?

A: We are exploring a bouquet of options for our funding because Sujana has set itself a very large target of achieving a Rs 5,000 crore turnover in the next 1,000 days and a corresponding PAT of approximately Rs 500 crore. These numbers are not frozen but in order to support such a blazing growth we have been discussing and examining various options of funding are available.

In that process, yes, we did speak to a couple of funds for long-term funding but definitely not for a stake sale. We are also looking at various novel ideas of financing and we are working out which is going to be the best and optimistic long-term funding available to the company to meet its target in the transmission line sector and new horizons which are coming up like nuclear power, like the revival of the old power plants, refurbishing of the power plants etc.

We have an out of box approach and thinking. We are looking at various options available to us and we should be able to report some concrete measures in the next quarter.

Q: In the next few weeks apparently you are looking to raise USD 100 million through a choice of instruments. Can you take us through if indeed that's the amount, what would be the instrument of your choice?

A: Yes, it is the amount that we have passed an enabling resolution in one of our meetings to enable the company to raise about USD 100 million. We would be raising this fund for our upcoming Guwahati plant which is going to augment our capacity by 100,000 metric tonne plus and increase our presence in the North East area and also help us to cater to the requirements of middle India. We may raise this fund in two tranches. As to the nature and who is the funder, at present I am not in a position to disclose.

Q: Where is your order book right now and how much of a conversion of that order book do you expect to see in FY12?

A: For FY12, we are talking of about Rs 1,450 to 1,550 crore, out of which at least 25%, that's about Rs 400 to 500 crore would be accruing through our export efforts in African countries like Kenya, Malawi and Zimbabwe. As of now we are carrying a domestic order book of Rs 850 crore plus and an export order book of Rs 100 crore plus. I am sure we should be able to tough our targets as usual.

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