Man Infraprojects to take 6 months to list: Man Industries

In the process of listing Man Infraprojects, both Man Industries and Man Infraprojects will be merged and demerged and in the process every shareholder of Man Industries will get one share free in Man Infraprojects, says RC Mansukhani, Chairman of Man Industries. The listing process will approximately take six months, he says.

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Mansukhani told CNBC-TV18 that Man Infraprojects is a totally debt-free company and has approximately Rs 200 crore assets. The total worth of the company is around Rs 700 crore, he says. Below is the verbatim transcript of RC Mansukhani's interview on CNBC-TV18 Q: Could you explain this whole process of Man Infraprojects and the timeline for listing this entity?
A: Man Industries and Man Infraprojects are different businesses. Man Industries is in pipe business serving the hydrocarbon sector and Man Infraprojects is an infraproject in a realty company. Both entities will be merged and demerged in the process and in that process every shareholder of Man Industries will get one share free in Man Infraprojects Ltd. The time limit for this – we have already started the process, the KPMG is our advisor and we have already submitted the scheme to BSE and NSE. We are getting the approval in a few days and the total process will take approximately six months. Q: Any rough valuations for Man Infraprojects and will you be looking to raise money in either Man Industries or Man Infraprojects?
A: No, Man Infraprojects right now is totally a debt-free company. It is having approximately Rs 200 crore assets. There is no immediate borrowing programme as far as Man Industries is concerned. This split took place a few days before and now we are having dialogues with KPMG as to how to restructure and other things and how to grow the business. We have some plans to grow the Man Industries and Man Infraprojects businesses, which will be managed by my younger brother where the family settlement took place. They will control it. Q: Just wanted to clarify, this Man Infraconstruction has got nothing to do with your group?
A: No. Q: In terms of financials, is Man Industries reflecting full financials as of now of Man Infraprojects and once that is demerged, what kind of impact will that have on the financials?
A: The total worth of the company is around Rs 700 crore for the company as a whole. Approximately Rs 200 crore worth of assets will be demerged. Rs 500 crore networth also will remain in the company, which is sufficient to run the business and the Rs 200 crore will be the new company and then they will have the new programme in the new company in the coming months and years. Q: These are the assets that you spoke about, in terms of revenues as well as in profits could you tell us what Man Industries will be left with and even potential leave for Man Infraprojects, what is the revenue as well as profitability picture?
A: Because of the assets still not developed there will be no revenue loss for Man Industries. Man Industries will continue business as usual and Man Infraprojects will develop some properties, which will help in getting revenues in coming years. Q: What will be the rough shareholding pattern of Man Infraprojects?
A: The same equity like Man Industries - we have Rs 27 crore equities, one-to-one equity we are offering. Every equity share held by a shareholder of Man Industries will get one free share to Man Infraprojects. It is a mirror reflection of the equity. Q: You said that the whole process of listing will take six-nine months but for Man Infraprojects to make some money, it will still take a few years which means in the first two-three years despite the company being listed, they are not going to be any operational money which will be there?
A: Not like this. Some property is already being developed. Some property is ready and some they have to take the new land, it will be developed in the future. So current year also revenue is there, I cannot say exactly how much but the revenue model is already there and the work has already started, some stock is there and some new work - so this company, the new infrastructure projects also will have the revenue and profit from very first day. Q: Will you consider perhaps reducing your stake in Man Infraprojects or anything, do you have such plans about changing the shareholding pattern later?
A: Later as per the settlement, I will give equity to my brother and my brother will sell equity to me. This is to avoid conflicts in management. So some equity will be owned by both the brothers in each and every company and management will be separate for both the companies.