The company aims to bag substantial orders from the Rs 2000 crore tenders floated by BMC, said Nalin Gupta, ED of J Kumar Infra.
As of now the debt for J Kumar is close to around Rs 500 crore but we are not going to utilise QIP funds for the repayment of the debt.
Nalin Gupta
ED
J Kumar Infra
From the sidelines of the Anand Rathi Emerging India Conference, Nalin Gupta, executive director of civil engineering and infra development company J Kumar Infra said the Rs 137 crore funds raised from QIP would be mainly used for capital expenditure and working capital requirements and would not be used for paring debt.
The debt for the company currently stands at around Rs 500 crore.
According to her Rs 70 crore capex would be sufficient for the next two-three years.
With the infrastructure sector slated to get a boost from the new government, Gupta is upbeat for the company's future prospects. The company has bid for development of Mumbai Metro. The pre-qualification have been submitted and the procedures are in advance stages now, said Gupta. The project could be around Rs 20,000-25,000 crore.
The company had also bagged reasonable amount of the Rs 3000 crore tenders floated by Bombay Muncipal Corporation (BMC) last December. Moreover, they also aim to bag substantial orders from the Rs 2000 crore tenders floated in September now, he added.
J Kumar Infra stock rallied 84 percent this year.
Below is the transcript of Nalin Gupta's interview with Sumaira Abidi and Reema Tendulkar on CNBC-TV18.
Sumaira: The Rs 137 crore qualified institutional placement (QIP) that you had recently, have you already earmarked what these funds would be utilised for?
A: We have earmarked 60 percent of the funds for the utilisation of capex and the balance money would be utilised for working capital, close to Rs 70 crore for capex, Rs 60 crore for working capital and the balance would be for general corporate expenses that we have marked for.
Reema: You do not plan to use any of your funds for debt reduction and also if you could tell us what the debt on the books currently stands at?
A: As of now the debt for J Kumar is close to around Rs 500 crore but we are not going to utilise these funds for the repayment of the debt. This is basically to be utilsied in the terms of expenses for capex that we have and for the next two-three years and for the working capital requirements and no fund would be utilised for the repayment of debt.
More to come
J Kumar Infra stock price
On September 09, 2014, at 14:15 hrs J Kumar Infraprojects was quoting at Rs 326.00, up Rs 4.40, or 1.37 percent. The 52-week high of the share was Rs 349.75 and the 52-week low was Rs 130.05.
The company's trailing 12-month (TTM) EPS was at Rs 28.39 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 11.48. The latest book value of the company is Rs 183.67 per share. At current value, the price-to-book value of the company is 1.77.
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