The Hindu Business Line : Parekh Aluminex plans Rs 125-150 cr GDR/FCCB issue

Small cap company Parekh Aluminex plans to raise funds via Global Depositary Receipt or foreign currency convertible bonds. The company makes aluminium foil food container.

Mr Amitabh Parekh, Chairman & Managing Director of Parekh Aluminex, says the company plans to raise around Rs 125-150 crore.

Excerpts from CNBC-TV18's exclusive interview with Mr Amitabh Parekh:

How much money do you need and what sort of capex are you planning for FY-08?

In total, we are planning to raise between Rs 125 crore and Rs 150 crore, while the total capex that we are planning to do is in the range of Rs 200-225 crore, which is mainly because we have begun to cater to the global market.

We used to cater to only the UK market; but now, the company has received huge orders from America, Switzerland, Germany and Australia.

So, in order to cater to all these markets, the company is going in for the capex investment.

What is your total order book right now and how much does the UK contribute to your revenues?

This year, the company would be doing a turnover of approximately Rs 275 crore, wherein the exports would be to the tune of Rs 100 crore plus and the UK revenue would be close to Rs 70 crore in that.

You are raising only Rs 125-Rs 150 crore. How is the balance Rs 75-Rs 100 crore being funded?

Half is getting funded via internal accruals and for the balance, we have already tied up with our existing consortium bankers, who have already sanctioned us Rs 75 crore.

So what would your capacity as on March 31, 2008, be once all this is on-stream?

The capacities would be on-stream by September 2008; later on, our total capacity would be in tune to go to a turnover of Rs 600 crore.

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