In conversation with CNBC-TV18, Manoj Gaur, Executive Chairman, JP Associates, said the company is encouraged by the investor response to the QIP issue.
Also Read: Ashok Leyland raises over Rs 666 cr through QIP issue
"There was a demand for almost USD 360 million and the (QIP) issue got oversubscribed. There was a band of about 70.50 to 74.50," he said.
Gaur said the proceeds will be used judiciously to pare down debt. On capex plans, he said for the last two years, the company has not undertaken any capex and there is no immediate need as such.
Below is the transcript of Manoj Gaur's interview with Latha Venkatesh & Sonia Shenoy on CNBC-TV18.
Sonia: Could you begin by telling us what was these funds that you have raised are intended for, what you will use them for?
A: We are very pleased to see that investor community at large has actually supported the issue, there was a demand for almost USD 360 million and the issue was oversubscribed and there was a band of about 70.50 to about 74.50 and we all have seen invariably when the QIP launched, generally in the last hour of the trade on that day the share gets beaten. So the USD 250 million QIP has been specifically closed, at the 70.45 at the lowest of the price of that band, at the same time I also want to say that, this overwhelming response places a lot of responsibility on us and we are conscious of it.
To answer your question to utilisation of these proceeds let me tell you, that as it is in public domain, for the last two years, we are not undertaking any capex and there is no need as such, but when you are wanting to improve your operational efficiencies, some part capex here and there, some sidings, some other arrangements, some balancing, the thing which are required, so we are going to use these proceeds judiciously, privately it is going to be used for retiring some of the debt.
Sonia: On the capex that you just mentioned, you have resolved to curtail it until you get the leverage back in order but given that the general outlook towards infrastructure has improved, would your resolve still hold or will you evaluate capex in some areas of business this year?
A: All Indians deserve to be complemented to choose a government which has got full majority and then last six weeks, or rather first six weeks of this present government, led by Mr. Modi, has installed a lot of hope and optimism across the globe. Thus we are able to raise equity and sentiment is improving. First I would like to say that we need to be lucky and we pray that good monsoon is there for the country, so that policies of the new government led by Modiji get implemented properly and finance ministry is not under any undue pressure because when monsoon is not good we all suffer, but to answer your specific question let me be very candid here, as far as our group is concerned we have seen after investing heavily in infrastructure, it was a tough period so in order to remain regular, in fact I am on record, people were taking debt almost like a sin, people were coming out with all sort of rumors unfortunately, but group has shown the resolve and we were successful, we did take steps which are now getting concretised.
Jaiprakash Asso stock price
On July 07, 2014, at 11:10 hrs Jaiprakash Associates was quoting at Rs 73.90, up Rs 1.05, or 1.44 percent. The 52-week high of the share was Rs 88.80 and the 52-week low was Rs 28.40.
The company's trailing 12-month (TTM) EPS was at Rs 1.87 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 39.52. The latest book value of the company is Rs 61.95 per share. At current value, the price-to-book value of the company is 1.19.
Anda sedang membaca artikel tentang
Will use QIP proceeds to pare down debt: JP Associates
Dengan url
https://olahragakecantikan.blogspot.com/2014/07/will-use-qip-proceeds-to-pare-down-debt.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Will use QIP proceeds to pare down debt: JP Associates
namun jangan lupa untuk meletakkan link
Will use QIP proceeds to pare down debt: JP Associates
sebagai sumbernya
0 komentar:
Posting Komentar