We are worried about stock price fall of Talwalkars; Big investors haven’t sold their stakes: Anant Ratnakar Gawande

Anant Ratnakar Gawande, Director, Talwalkars, in an interview with Swati Khandelwal of Zee Business, spoke about the expected reason behind the fall in stock prices, debt levels and plans of the company. Edited Excerpts:

Q: What led to this huge decline in stock prices of both the Talwalkars Better Value Fitness and the Talwalkars Health?
A: Frankly speaking, even we are worried about who is selling it. In the process, we are also talking with big shareholders on the issue as well but have not been able to get any information on who has sold it, neither anyone invoked their pledge. Even we are not aware of what is happening but are trying to find it out. 

Q: It is a continuous fall and you would be knowing about it?
A: I am not aware of the reason, even the volumes being traded had reached almost zero. Big investors call to speak about the issues, and we are confident that they haven’t sold anything. Neither pledge had been invoked till Friday. 

Q: Then what are you doing, even NSE and BSE have asked for a clarification from you?
A: We have provided clarification we are providing clarifications daily that there is no problem and that is why I am giving an interview to you.

Q: Your debt position stands at Rs700 crore, which is almost three times the combined market cap (of Rs280 crore) of Talwalkar’s. Do you think that the issue is related to debt repayment?
A: I would like to say opposite to it, one month before from here the debt to market stood at 1.2:1.4. If I am right you are seeing at the ratio that has emerged after a fall in the share but we had a different ratio before this fall. 

Q: But do you think that the current fall can turn up to be a matter of concern and how will you reduce your debt in this financial year?
A: Every irregular thing ultimately comes to regularity and I was talking about what was happening a month ago and you because one must know where the market cap to debt ratio was positioned then. Besides, we have serviced the interest of the bank or debenture interest on time and that is why our rating stands at AA. So, we are supposed to monitor and investigate what is happening. 

Q: By when you will be sure about the problem or SEBI has said something to you?
A: We are talking with many people like the press and you and we have no issues in talking with anyone. I hope the things will come back to normal in 2-3 days.

Q: Do you think that it is difficult to find out who has sold these many stakes that led to such a huge fall?
A: I have already informed you that our top shareholders and pledge invokers haven’t done anything till Friday. 

Q: What is your next step immediately?
A: We are opening our August scheme and are focusing on it. In addition, we have opened a club in Pune and its membership should be increased and we are increasing the number of Sarva Yoga studios. We had one studio in Bandra and now we are opening at Kandivali. Along with it, we are opening these studios across India as well as with Oyo Rooms. So, we are working on all these fronts because the business should continue. I request you to pay a visit to our studio and the gym, which is being marketed through online media platform for the August membership. 

Q: Can you provide a timeline by when you will be able to find a concrete reason behind this fall?
A: I have said that we will be able to find out the reason in the next 2-3 days.