Hi ARIJIT, yes, I had.. yesterday.. and covered to day [sorry had not seen yr post earlier]

Hi arjun_chauhan, no, don't avg it yet

Hi yatin, after recent sell off 6200 seems unlikely this month.I am afraid we will need to book loss here. still there is some time. let the option be for now. lets see if markets recover a bit in coming days

Hi Shishir, yes, its a hold for med term. fundamentally looks good

Hi saumya, it can test 86 again

Hi Ram M, it can test 1000 levels it seems.

ok CB. Should I exit at 86? bought at 82

Hi CB, can i buy LIC at cmp, or can u plz tell me entry price. thnx

To monetise Chennai asset over next 7 yrs: PVP Ventures

PVP Ventures has entered into a joint development agreement with realty majors Unitech and Arihant Foundation to develop commercial property at its 78-acre land in Chennai. The company expects to begin generating cash by the second quarter of calendar year 2011. Cash flow to the tune of Rs 1400-1600 crore mark is seen over the next seven years.

In an interview with CNBC-TV18, Prasad Potluri, CMD, PVP Ventures gave his perspective on the joint development agreement and the company's business plans going forward.

Below is a verbatim transcript. Also watch the accompanying video.

Q: On your real estate business, you have a 78-acre land in Chennai, tell us about that. You have entered into a joint development agreement with Unitech as well?

A: Yes, the company owns part of Binny Mills which is a 70-acre parcel in the city of Chennai. We have executed a joint development agreement with Arihant Foundations, which is a Chennai based company, and Unitech where they both have formed a joint venture and developing this land for us.

As a landlord for this asset, I am happy to share that the development is in advanced stage. The entire permits are in place and we hope to monetize this asset over the next seven years wherein we will start accruing revenue from Q3 of this year.

Q: What kind of revenues are you looking at over a period of seven years and what kind of – in the shorter-term how much could you get?

A: Short-term could not be material but over the next seven years based on our current modeling and based on the current pricing, we expect about Rs 1,500 crore of cash flow over the next seven years.

Q: We understand the company has debentures which are worth 406 crore which is a lot high than what even the current marketcap of the company is, could you tell us by when these are due to be converted into equities and what would your equity base stand at and at what price?

A: Currently as per the information available in the public domain, the current share capital of the company is about Rs 231 crore and Rs 406 crore debentures are subscribed by myself through my holding companies which have invested three years ago and portion of that Rs 273 crore is convertible to equity of PVP Ventures at Rs 204 a share on January 22.

Q: Once you convert such a high amount of debentures to the tune of almost Rs 273 crore, you are sitting on a marketcap of close to about 300 crore or so, once this gets converted, what will the promoters stake be, how much will the equity base go up by?

A: The promoters stake – we are converting at the pre-exit price of Rs 204 per share. So the promoter ownership is not going to change any materially, it is only going to be increased by 2% from 62%, it is going to go upto 64% and the entire share capital of the company will go upto Rs 245 crore from its existing Rs 231 crore.

Q: You are confident of converting it because currently the stock has just quoting at about Rs 12-13 and the conversion price is way higher above Rs 200?

A: Yes, that is a commitment we made to our shareholder and as a promoter I have to walk the talk.

Q: Could you also tell us the total debt situation of the company?

A: The company is relatively a debt-free company. We hardly have Rs 25 crore debt in the company. Barring that the entire Binny Mills is owned by the company and we have an asset based in Hyderabad as well. Barring that I would say that the company is fairly debt-free.

Q: Just to reiterate, can you just tell us the conversion price again because we are finding it a little tough to digest, at Rs 13 on the stock price currently, this is a little hard to believe that the conversion price is so high?

A: The conversion price was pre-agreed as per the debentures when they were issued three years ago. Those were mandatorily convertible debentures.

Q: This is Rs 204 on the conversion price?

A: Yes. Rs 273 crore is due for conversion and the board will be meeting up and deliberating on that soon.

Q: When will this happen, can you give us a timeline on when you are expecting this board meet to happen and eventual conversion as well?

A: Over the next few days, my management team will be informing the exchanges.

Q: Just for a confirmation, apart from the promoters, does anyone else hold the debentures because I don’t think I caught that?

A: No, I am the only one who holds the debentures, and have invested in this company.

Q: Your stake which will go up by 2%, if you convert all of it?

A: Yes.

kya cb sir morning ki sawal ka abhi tak reply mahi

Hi rajashree, looks a bit weak. enter it lower near 150. Manali petro is a hold for med term. likely to recover back

Hi sourabh, can see 129-130

Hi chandu, was not online before.. no, not really sure of any website for forex trading

Hi divyesh, for now hold with sl near 630. technicall a bounce is expected from 635-640 levels.

hey i have buyed fortis @146 in fno u said it will be 143 in short term but it isnt going up what levels now do u see all loss should be booked