Bartronics plans FCCB buyback
At 50% discount
Amit Tripathi
Mumbai
Bartronics, the Hyderabad-based provider of automatic identification & data capture (AIDC) technologies, RFID, smart card and point-of-sale solutions, is planning to buy back its foreign currency convertible bonds (FCCBs) from the market.
The company has about $50 million in the form of FCCBs and is already in talks with some of the bond holders for the buyback.
"We are talking to some of the bond holders. But, we are not in a hurry. Considering the market condition, we are looking for a good discount offer from them. We are looking at about 50% discount and unless we get closer to that discount range, we will not buy them back," Bartronics managing director Sudhir Rao told DNA Money.
According to him, the buyback plan would help the company reduce the debt burden and provide some relief to the already stretched balance sheet.
In fact, market sources were indicating at a plan of the promoters for buying FCCBs at a discount, though, on the other hand, they were selling their shares in the market.
"Even if you consider that the promoters are buying them back while selling shares from one side, I think it makes a good business sense. They are selling shares at a better rate and buying back the FCCBs at a discount," Rao said.
The promoters of Bartronics have been selling about 2 lakh shares every quarter since last eight quarters. They hold about 28% currently in the firm.
The company currently has a debt of about Rs 310 crore and a cash balance of about Rs 40 crore.
Meanwhile in the second quarter of FY10, the company earned revenue of Rs 137 crore of which smart cards and solutions contributed Rs 40 crore and 97 crore respectively.
Bartronics earns 60% of its revenue from the domestic market while the rest comes from Singapore and the US. The firm's order-book of Rs 650 crore, however, remained almost static since the last quarter due to dip in order execution in Singapore and the US.



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