See options in stake sale or PE funding: Logix Microsystems

In an interview to CNBC-T 18, Sanjay Soni, Managing Director of Logix Microsystems said the company's process to spinning off Indian business into a separate subsidiary to unlock value is all set to done by January end or early February. He said the move will give a dedicated focus to the Indian market which sees a lot of traction. "We have increased our customer base significantly this year and we would like to give it a thrust," he reiterated.

Further, he said, "Either a stake sale or a complete sale or even getting private equity into the picture are the options that we are looking at. Listing at this point of time or even one year down the line would not be very feasible."

Below is an edited transcript of Sanjay Soni's interview to CNBC-TV18. Also watch the accompanying video.

Q: You are in the process of spinning off your Indian business into a separate subsidiary to unlock value. Can you take us through when this is likely to be complete?

A: Yes, we have started the process and it will take around 40-45 days. So, by the end of January or by middle of February we should be able to complete the project.

Q: Can you explain to us the rational behind this move?

A: It is basically to give it a dedicated focus on the business since we are seeing a lot of traction in the Indian market for online solution especially automotive. We have increased our customer base significantly this year and we would like to give it a thrust, hence we are carving it out and putting it at a separate spot. And may be somewhere down the line unlocking some value in it.

Q: Are you going to relist it? Are you going to list it as a separate company on the board or could we expect some amount of strategic sale, just give us an idea of what you are evaluating?

A: We have multiple options; I would say a strategic sale could be an option. Listing at this point of time or even one year down the line would not be very feasible. However, either a stake sale or a complete sale or even getting private equity into it or something like that is an option.

Q: A majority of your business is international and we understand that you are seeing some amount of traction in the US. Can you take us through where exactly you are seeing this demand and what is behind it?

A: We have seen an up pick in automotive shares in the year and they have again started spending money. The Americans, Japanese are doing well and they are again spending money on new products. So we are seeing a lot of interest and it is going to be a major growth driver for us in the next 12-24 months.