Pramod Jain does not hold any stake in GTC: Sanjay Dalmia      

Pramod Jain and Pranidhi Holdings have made a voluntary open offer for 20% in Sanjay Dalmia promoted Golden Tobacco (GTC). In an interview with CNBC-TV18, Sanjay Dalmia categorically stated that Pramod Jain does not hold any stake in GTC. He also spoke about the company plans in the real estate sector. "We will not sell the real estate business; we will develop it with a joint venture," he said, adding that Godrej was not in the radar for the joint venture (JV).

Q: What did you read into the white paper that was released on goods and services tax (GST) and what do you think it might mean for the tobacco industry?

A: Whatever little I understand, basically GST is a central sales tax in a way. In any case in tobacco industry always, in lieu of sale tax, there was additional excise duty. Otherwise states can have any different taxation for any commodity. In tobacco this agreement was done many years back. It is not something, which happened one year or two year – it is at least 20-30 years old agreement where states will not impose any sales tax and center will have in lieu of that additional excise duty, which is to be shared with the states. So I think GST is the same thing. I don’t understand what the difference is.

Q: Lots of investors own your stock not because of the core earnings but because of the real estate that you have. Have you taken a call as a management on what to do with the 12 acres at Vile Parle?

A: We are working on it.

Q: How and in what direction?

A: We want to develop it – JV or something like that.

Q: But not sell it outright?

A: No, right now it’s a JV thing.

Q: With whom?

A: We are working on it. I cannot tell you.

Q: There were some indications that you may in conversation with Godrej Industries for joint development of that.

A: I cannot give you the names. Godrej is not in the radar.

Q: What have you valued this land at?

A: It is not a question of land – it is a question that you make something out of it and then sell. So the value addition will not be the land but it will be whatever you make – whether it is commercial or residential.

Q: We are asking what the land bank is valued at.

A: I don’t know but the valuation, which we got valued some time back, is around Rs 800 crore odd but today I don’t know.

Q: There is an open offer on GTC this morning at Rs 101 from Pramod Jain. What is going on there?

A: Ask him

Q: But the offer is on your company?

A: Anybody can buy the stock. How can I stop anybody? My holding along with my relations and friends is comfortable, so I don’t care.

Q: Is it comfortable or has it come down to 18% over a period of time?

A: I cannot give you promoter holding. I am also talking about friends and relation, which are never included in promoters. There is a huge bank of friends and relations we have got over a period and not in the last 1-2 years. So that is not part of the promoters. They always believed in us and they always believed in the company and that is how they are holding it.

Q: What is the holding in the company for Pramod Jain and his associates?

A: I don’t think there is any holding to the best of my knowledge.

Q: We understand that it’s about 6.5%?

A: I would not know who are his associates but if he has 5% and obviously without 5% he could not have made this open offer. He may not be having it but somebody else maybe having it – he maybe a front for somebody. Earlier also he did all these things but nothing came out, I don’t know and I don’t want to say anything, whether it is serious or not. But I am not worried and I don’t care.

Q: Have any of the GTC shares been pledged?

A: They were earlier pledged, now there is nothing. We have already declared. I don’t know the exact figures.

Q: What is your total holding between friends, family and promoters is?

A: That I cannot disclose. These are my secrets.

Q: You have plenty of them it seems.

A: I have comfortable [stake holding] so I don’t care. If somebody wants to buy GTC at whatever price – I don’t care. But the only thing is that it affects the market in whichever way, I don’t know. I cannot come in the way of democratic working in the market. But so long as it doesn’t affect my working it doesn’t matter to me.

I have enough, so if somebody wants to buy at whatever price, tomorrow if someone wants to buy at Rs 150, why I should say no? It increases the value of my stock also.

Q: It could also end up threatening your position as the management of the company?

A: We will see that – theoretically, it can, if somebody starts buying. But if I have a comfortable holding then it doesn’t matter to me. But if it’s going to be some kind of hostile, [takeover attempt] then we are equipped.

Q: What is the combine debt level for GHCL and Golden Tobacco at this point?

A: I have no idea.

Q: You don’t know how much debt there is on the books?

A: I am not involved with day-to-day affairs. It’s all in the balance sheet. If you want we can send it to you. But I don’t run the company on a day-to-day basis. I am on the board and do overall supervision but I don’t get any salary or perquisite from any of these companies. So, I am not involved in day-to-day working. The company management is already there.

Q: Is it true though that the management had to take a fairly large sized loan from Indiabulls Financial Services to the tune of more than Rs 600 crore?

A: That is not true. None of these companies have any loan from Indiabulls. There is a small loan in Golden Tobacco of Rs 30-40 crore and that is it.

Q: No, not the companies – the promoter?

A: We never took Rs 600 crore. Those figures are absolutely wrong. The total was Rs 200-250 crore something like that and most of it was paid. Some is pending and we are working out how to payback.