Praj Ind promoter sells 8% stake to Tata Sons

Excerpts from the exclusive interview with Pramod Chaudhari :

Q: 8% stake is what you sold to Tata Sons; Post this sell off what would your stake be in the company and what would Tata Sons stake be?

A: I continue to hold 20%. I'm still the single largest shareholder. We have sold exactly 7.3% to Tata Sons.

Q: And what would take Tata Sons stake to?

A: It's the first time they are buying into.

Q: At what price have sold off this 8% stake?

A: It is at I think at Rs 252 close to the market price.

Q: As we understand there is Tata Sons member who is going to be joining Praj industries board. If you could confirm the name for us and would you also be looking at diluting further stake to Tata Sons in future?

A: No certain plans like that. We don't know about that. I think its better to find out from Tata Sons.

Q: If you could confirm the board member's name for us?

A: There is no such arrangement since already one of their board member Mr. Kishore Chaukar is on our board. He joined us as a independent director three months back.

Q: But with Tata Sons holding 8% now and your company will it be more of a strategic holding or will it be more of a financial assistance that you are seeking from the company?

A: This is not company's finance. I sold my stake so it is not for the company. We have safeguarded the shareholders interest and we are not diluted the company. Infact with their contribution in the strategic nature, Praj can go to various places in a much confident way. We have got opportunities for big projects and other things all over the world and we would like to take advantage of this association.

Q: Has Tata Sons at this point in time shown any interest or has made any indication as to going about increasing their stake in the future?

A: There is no such dialogue or any discussion of that type.