In an interview to CNBC-TV18, Pradyumna T Venkat, CEO - energy and RFID of Gemini Communications says, the company would be commencing the process of buyback in about two-three week’s time. “We have recently filed the approval with SEBI. We expect the approval to be with us in the next two week’s time,” he adds.

Below is the edited transcript of his interview on CNBC-TV18. Also watch the accompanying video.

Q: Long back your board had approved a buyback. Then you were supposed to apply to the SEBI. Have you heard from the SEBI with respect to an acceptance of your buyback?

A: We have recently filed the approval with SEBI. We expect the approval to be with us in the next two week’s time. Once that is there, we would be commencing the process of buyback in about two-three week’s time.

Q: The maximum price for this buyback, what I understand, is about Rs 45 per share. It’s quite a high premium, almost 80%. How has this price being arrived at? When is this process due to begin?

A: The company is doing extremely well. The board has arrived at this price considering where we stand today and the growth that we would be envisaging over the next three years. We are in a very exciting stage, as far as some of our business lines are concerned.

One of our subsidiary companies, PointRed Telecom, is today the only Indian 4G equipment manufacturer. We are very close to signing a couple of contracts on the LTE (Long Term Evolution) technology shortly. We are supporting a lot of these trials in India as well to some of the companies who have secured allotments.

Considering that the broadband wireless access rollout is slated to happen in the next couple of month’s time, we expect that we would be considered favourably by some of the operators. We are quite excited about this growth opportunity. There is a Rs 20,000 crore market ahead of us over the next three-five years time.

Considering where we stand today, we hold about 38% market share in 4G. We are quite hopeful of taking a large chunk of this market. We are also doing extremely well in the services front.

Q: Since you were talking about PointRed Telecommunication, you have fund raising plans for that. Why not use the money instead of the buyback for investing it into PointRed? What's the cash on the books?

A: PointRed, we have been evaluating some of the opportunities that have come by from the PEs community. We are not in a hurry to take a call because the broadband wireless space is on the brink of a huge revolution. We are looking at a hockey stick kind of growth over the next three-five years.

We are just waiting and making sure that we would probably bring in investments at the right time. We are not in a hurry. So, we today are focusing on rolling out some of our products and enabling these 4G networks for the first time in India by an Indian company.

Q: In this quarter, the promoter’s stake has fallen by about 4.5%. Is that the reason for initiating the buyback?

A: Not really. We have initiated a company buyback. I don’t have numbers on the 4.5% drop that you talked of. So, I will not be able to comment on that. We have initiated this buyback because the board believes that we are in a very exciting space and the intrinsic value is not reflected today.

We believe that Rs 45 is still a good price for us to buy the stock from the market. This is only an upper cap. We would be going through an open market offer. Once we initiate the process of buyback, we would be accumulating shares up to Rs 45. So, it’s not that all of it is going to commit price of Rs 45. So, it’s just an upper limit that we have arrived at.