Bilpower to raise US$15 Million through FCCB Issue
Bilpower Ltd has announced that the Board of Directors of the Company at its meeting held on October 23, 2007, inter alia, has approved the Issuance of Foreign Currency Convertible Bonds (FCCB) up to USD - 15.00 Million.
The stock closed the day at Rs.178.25, up by Rs.7.15 or 4.18%. The stock hit an intraday high of Rs.186.40 and low of Rs.170.
The total traded quantity was 62174 compared to 2 week average of 25539.
Bilpower is likely to sign a joint venture deal with NTPC, which is likely to be finalised in three months, reports CNBC-TV18 quoting sources. The joint venture will add Rs 500 crore to the company’s topline annually. The JV deal may take place via its subsidiary called Tarapur Transformers, sources said.
Bilpower management, however, has declined to comment on market rumours.
CNBC-TV18’s Research Analyst Haresh Soneji said that it may not be premature to the extent of assuming the deal and the joint venture will happen through Bilpower’s 100% subsidiary, Tarapur Transformers.
“This venture will provide transformers - OEMs to NTPC. So they will be the sole suppliers, OEM manufacturers or it will be through a contract route. We will have to wait and see what happens,” he said.
He continues, “This will lead to about Rs 500 crore addition to the topline of the subsidiary. But it’s a low margin business, so volumes will be higher, but the bottomline will add little.”
Also the company is in the process of setting up private accredited research laboratories, at this point in time they are only government bodies, which are allowed to have such labs. But now it has received an in principle approval from the government, so that will add an additional 20% to the bottomline.