All shareholders of Triveni Eng will get 1 share free: CMD

Triveni Engineering has fixed May 4 as Record Date for Scheme of Arrangement with Triveni Turbine. Today is the last day that you can buy and get both the turbine shares and the listed company shares.

Dhruv M Sawhney, Chairman and Managing Director, Triveni Engineering and Industries Limited, spoke about that process and how investors should approach it now. Below is a verbatim transcript of his interview with CNBC-TV18's Udayan Mukherjee and Sonia Shenoy. For complete details watch the accompanying video. Q: What is going on with the strategic partner in the turbine business because if you had got one in by now, it  would have been an easier call for your investors to decide whether they want to own both the shares or not? A: We have GE Triveni Limited as our partner in the joint venture and Triveni Turbine which is going to be demerged on May 4; this JV will be a subsidiary of this company because we have 50 plus one share. All the value is going to be captured in Triveni Turbines. But in Triveni Engineering which is going to be still there we have four forward looking attributes because Triveni still owns 22% of Triveni Turbines besides the sugar water and the gear business. Q: Can you tell us more about the shareholding pattern and how it will look post the demerger? A: All shareholders of Triveni as of ex-date tomorrow will get one share free because it is a demerger. Triveni itself will own 22%, so the balance will be with the existing shareholders of Triveni. The company of Triveni which will remain will still have our water and our gear business. Sugar is now on the upturn, so we see two very strong companies happening. That is what our view that the moment we have businesses of a strategic size when they can be floated independently, we want to give this benefit to our existing shareholders and that is what we have done in this case and that is what we project to do in the future. Q: This process will end up creating some treasury stock as well. Can you take us through exactly how much and what is the plan with that treasury stock, whether you will monetize it at a later date or not? A: This actually is not treasury - Triveni will own 22% of Triveni Turbines. They are not something that will be monetized later. This will be repaid by Triveni Turbines through Triveni Engineering. The shareholding that Triveni will still have in Triveni Turbines is something that is a strategic investment. It