Plan to exit from real estate business: Bhagyanagar India

In an interview with CNBC-TV18, Narender Surana, MD, Bhagyanagar India, spoke about the latest happenings in his company and sector.

Below is a verbatim transcript of his interview with CNBCTV18's Reema Tendulkar and Ekta Batra. Also watch the accompanying video. Q: How much you are planning to buyback? You all have scheduled a meeting on 27th of this month. What is the quantum of funds that you all have kept aside for this buyback? And is it going to be at a fixed price or are you planning to just buy it in the open market? A: We have not yet decided because the board meeting is scheduled on 27th. But going from the background in 2010, we have done a buyback of approximately Rs 18 crore at an upper price band of Rs 40. Because we had sold a few properties in the recent past, some of these amounts that have been realised by the company can be given back to shareholders who wish to exit. And we thought that this would be a good way of doing it once again. This would be our fifth buyback, if everything is cleared by SEBI. Q: So what is the cash that you all are currently sitting? Where does the promoter holding currently stand at? A: The promoter holding is in the range of about 66-67%. We would like to reach a maximum of 75% even after the buyback and reduction of equity capital. That is one limitation. The second thing is the total amount realised on these two-three properties, which we have sold are in the process of realising the amounts, would be in the range of Rs 25 crore. Q: The last time you did a buyback, like you mentioned it was around Rs 40 per share. What is the indicative price possibly you would be working with? A: It was something very similar, around 50% more about the market price. But I can