Bhagyanagar India saw double digit gains in trade as the company plans to buyback a maximum of up to 80 lakh shares at maximum offer price of Rs 35 per share.

Managing director Narender Surana informed that the total buyback will be in the order of about Rs 15 crore and the total number of shares will be between 40-80 lakh. However, the promoter holding will stand between 71-72% post buyback.

Here is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying video.

Q: Could you provide some details by way of buyback? How much of cash are you planning to invest in the buy back? Do you have this cash on the books?

A: Funds are available. The total buyback will be in the order of about Rs 15 crore. The total number of shares will be between 40-80 lakh shares.

Q: What is the exact price of the buyback?

A: We cannot really determine the exact buyback price, but we will buy from the market at the market price. If the price slightly moves up or down, we cannot forecast, but we would buy at the market related price.

Q: What will the promoter holding stand at post the buyback?

A: It will be approximately between 71-72%. It’s currently close to 67%.

Q: Are there any outstanding FCCB’s in Bhagyanagar India? If yes, then how much and why isn’t the cash used to payback the FCCB’s?

A: The entire FCCB has been paid 10 days back. There is no FCCB to be deemed. There is no other exposure of FCCB. However, we have a total debt in the company of approximately Rs 70 crore.

Q: What is the cash generation like for the company on an annual basis?

A: It’s approximately Rs 20 crore.

Q: You have some expansion coming up as well. How much will you be deploying in that?

A: Currently, the expansion is in capacity of our copper project, which is expanding from 15,000 to 20,000 tonne. The total investment is less then Rs 5 crore.