US veteran entrepreneur Digvijay Gaikwad has written a letter to the Securities and Exchange Board of India (SEBI) seeking permission to retaliate at Rs 275 per share for Railways Enterprises. He wants to offer for a 55 percent stake in the company. Dev Chatterjee, Gaikwad living in Florida
In the conversation with, he also argued to justify his offer for the financial services company. Here are the main parts:
What is the reason for a counter offer on the price of Rs 275 per share for Railways Enterprises?
I believe in the foundation of the business of the railway. We continue to evaluate all kinds of business opportunities around the world. My offer is good for all shareholders of the company and they should support me. I think the evaluation of the company has been reduced, so I have offered this.
What is the purpose of writing a letter to SEBI? Why didn’t you appoint a merchant banker for offer?
I have full faith in the Make in India campaign of SEBI and Prime Minister Narendra Modi and the Government of India under his leadership. I am confident that they will consider our proposal openly and take care of the interests of all shareholders. My offer at this price is giving more price to shareholders. We have appointed a merchant banker and you will get information about this soon. We will show SEBI that we have enough money for retaliation.
You have invested in America and many countries of the world. Can Railigare be your first investment in India?
We keep looking for opportunities around the world. In the past, we have evaluated many companies in India. But more price was being sought for them and the price to earning ratio in India is also very high. We think Railigare is a good chance for us.
What is your opinion on Burman’s Sunday’s statement, which said that the railway management management is negligent?
I have used Dabur products throughout my life. We are not against anyone. If the management of Railways Enterprises was negligent, the price of this company would have fallen to zero. I am not doing any favor. I am investing in business and offering Rs 275 per share in cash. I believe that the company’s future is good.