India to stabilise post October: Ambit Holdings

The sell-off in yesterday's market has barely stabilised in the early trade today. Raising fresh equity in this market remains a challenge, feels  Ashok Wadhwa, Group CEO of Ambit Holdings. Speaking about the existing challenges on CNBC-TV18, Wadhwa said the sentiment is so negative that it is becoming extremely difficult for promoters who to raise money to refinance their debts. A bad news only lent a violent push to the market that is already sliding.

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Wadhwa anticipates one more fall in this market and expects a new market sentiment to emerge post October or at the end of this calendar year. "But I still remain optimistic about the environment in the medium-to-long run," he asserted.

Below is a verbatim transcript of Wadhwa's interview with Udayan Mukherjee and Mitali Mukherjee on CNBC-TV 18. Also watch the accompanying video.

Q: The markets taking a very dim view of companies where promoters have pledged shares or where there is a significant amount of debt on the books given the interest rates, or where there are large FCCBs. Are those fears warranted in the kind of environment we are trading in today?

A: The problem is that everybody recognizes that raising fresh equity in this market is a bit of a challenge and given that some of these FCCBs and some of these loans are due for repayment, the question that comes up is how are the promoters going to raise capital to be able to refinance this debt. Refinancing has become that much more difficult so it