We see a bright future for Kavveri Telecom: C Shivakumar Reddy, MD, Kavveri Telecom

Kavveri Telecom is the stock in focus because the promoters have made an open offer. C Shivakumar Reddy, MD, Kavveri Telecom in an interview with ET Now talks about this.

One why this open offer and what would your eventual stake be pre and post this this open offer?

Before this preferential allotment of 4 million shares and 1 million warrants to the promoters, we were holding 14.6% stake in the company. We see a bright future for the company going forward. That is why we have increased our stake from 14.6, with this new allotment of preferential shares, we will go to 39%. That has triggered the open offer.

You are looking at raising these funds for acquisitions. Have you zeroed in on anything as of now?

We have one acquisition which will be closing this quarter for which these funds will be used overseas, this is in Europe.

And you do not need any additional funds for these acquisitions I am guessing...

Right now we do not need any additional funding for these acquisitions.

What is the size of the companies that you are buying?

One company that we will be buying this quarter will be about US$15 million and another company we are looking at which hopefully we should close next quarter is about US$40 million.