The Hindu Business Line : Bhagyanagar Metals plans FCCB issue to set up IT park

BHAGAYANAGAR Metals Ltd, the Hyderabad-based telecom products company, is planning a foreign currency convertible bond (FCCB) issue to part-fund the development of an IT park. It is also set to restructure operations and carve out three separate companies.

The Managing Director of Bhagyanagar Metals Ltd, Mr Narender Surana, told Business Line that the company would be de-merged into three entities, Bhagyanagar Metals Ltd, Bhagyanagar Telecom and Bhagyanagar Infrastructure.

Bhagyanagar Metals has passed a resolution that would allow it to raise funds through FCCBs. This will enable the company to raise about Rs 70 crore and it has enlisted the services of merchant bankers for the process, Mr Surana said.

The funds would help part-fund the development of an IT park, which would have about 3,50,000 sq. ft. of office space near the GE facility at Hyderabad. This is part of the company's land. Bhagyanagar Metals expects to raise funds through other options including debt, he said. The company had earlier roped in a Singapore-based investor engaged in real estate development.

The group company Surana Telecom Ltd had successfully bid for three acres of prime land in Bangalore and is finalising plans for land development (once the deal is concluded.) Surana Telecom is also in the process of restructuring operations.

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