Man Infraconstruction is aiming to increase saleable area on the back of new policy changes, said Parag Shah, MD of Man Infraconstruction. Not just this, he further expects the company to double revenues in FY17. Speaking to CNBC-TV18, he said the promoter's stake is likely to increase in Man Infra going forward. The promoter's stake currently stands at 61.5 percent in the company. Besides, notable investor Radhakrishna Damani and family owns approximately 2 percent (around 45 lakh shares) in company, Shah added.The company's current orderbook stands at Rs 1,000 crore.(Note: A previous version of this article erroneously mentioned Radhakrishna Damani as a promoter. The error is regretted.)Below is the verbatim transcript of Parag Shah's interview with Reema Tendulkar & Nigel D'Souza on CNBC-TV18. Nigel: Besides a notable investor like Radhakishan Damani that has come into your company, I am looking at and it appears that promoters as well have been buying from the open market. Could you tell us what exactly is promoter's stake, what it has moved to and also where do you intent to take your promoter stake to because in the last year you had cut down on your promoter stake.
A: Radhakishan Damani has added his stock. He was already a shareholder and he has added further stock. As far as promoter is concerned, I was holding around 60 percent and now it is around 61.5 percent.
Last year the promoter sale was mainly because of philanthropic activities, which I had declared at that time as well. The company's performance looks good this year as well as next year.
Reema: Two part question. One, what is Radhakishan Damani's current investment in Man Infra after the recent buy in the open market. Second, you said you have upped your stake from 60 percent to 61.5 percent - that's about 1.5 percent. You still have about 3.5 percent to go via the creeping acquisition route. Will you look to increase it, at least acquire 5 percent in this year? Is that permissible?
A: It is likely to be.
Reema: What about Radhakishan Damani's total holding right now?
A: He and his family are holding around 45 lakh shares, which is close to 2 percent.
Nigel: The last time we spoke, you told us that you had bid for port orders worth 700 crore, any headway on that part. Could you tell us have you heard anything, any of those orders have got confirmed, are you expecting any fresh orders?
A: The port order that we were discussing last time, we have already received, we have signed the agreement also and mobilising has already started, which is around Rs 751 crore.
Reema: What is the current order book of the company and what is the pipeline looking like?
A: Current order including the port order is close to Rs 1,000 crore. We have bid for two-three small projects, not very significant project which are likely to be announced in few days time.
Nigel: The development projects that you have taken up in various parts of Mumbai. What is the progress over there, when exactly can we see that flow into your books?
A: Most of the projects are started except Naidu Colony which is at Ghatkopar. It's a Maharashtra Housing and Development Authority (MHADA) redevelopment project. The size of the project is near to 10 lakh square feet, which was initially around 4 lakh square feet. We are waiting for the MHADA policy to come and maybe the work should start in next two months.
Reema: What will all this mean in terms of your FY17 revenue growth?
A: I will not be able to say it right now but we are expecting at least double turnover than last year.
Nigel: There were talks that various development regulations will be changing in mumbai itself. Does it affect any of your existing projects, do you see further floor space index (FSI) coming in, can you load more transfer of development rights (TDR). Does it affect any of these projects?
A: The TDR loading has been increased in most of the projects. Our Atmosphere project, initially it was 17 lakh square feet. It should reach around 21.5 lakh square feet once Development Plan will pass in 2034
Nigel: That is close to 4 lakh incremental square feet that you could sell?
A: Yes, same thing has happened at Naidu Colony, MHADA project, it has nothing to do with TDR, but with MHADA policy we are expecting to increase from 6 lakh square feet to 10 lakh square feet.
Nigel: What is the average realisation that you have? What is the saleable rate per square foot?
A: Approximately Rs 15,000 on saleable area.
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