Date:20/06/2006 URL: http://www.thehindubusinessline.com/2006/06/20/stories/2006062004811400.htm

Back No decision yet on buyback: REI Agro

`Nothing special in buying shares from market at Rs 70/share'

The savage fall in the markets saw some promoters of mid-cap companies coming forward to buy their own stocks. REI Agro is one such company, where the promoters acquired some shares of the company on June 14, when the stock had plummeted.

The Vice-Chairman and Managing Director of REI Agro, Mr Sundip Jhunjhunwala, says this activity was done in the normal course of business. "We feel that there is value for us to buy at these levels because of the growth prospects of the company," said Mr Jhunjhunwala, adding that they have not yet decided anything on a buyback.

Excerpts from CNBC-TV18's exclusive interview with Mr Jhunjhunwala:

Are there any plans for a formal buyback or something that you may want to do?

There is nothing special about it. It was done in the normal course of business, purchasing it from the market. Portfolios are rearranged, reviewed from time to time. The total percentage, which the promoter group companies have brought through the market, is very insignificant; it is only half a per cent till now.

We feel that there is value for us to buy at these levels because of the growth prospects of the company. We have not yet decided anything on a buyback.

What was the average price at which you acquired those shares?

It was around Rs 70.

What is the total holding of the promoters now in the company and any plans to take it up a bit?

Promoter holding as of March 31 was 44.20 per cent. We have got half a per cent more from the market in the last couple of days. At these levels, we should be able to buy a little bit more.

If it slips to about Rs 70 again, will you pick up a little more?

We think so.

Why not do a formal buyback? If you see so much value in your stock, which has plummeted over the last one month, why not spend some of the company money buying up the stock?

We are considering that also and we are going to take this up, probably in the next board meeting. But when the stock plummeted below Rs 60 levels, we thought it was the right time for us as promoters to pick up a little bit of the stock