IndusInd Bank on Wednesday said it has sold over 38 lakh shares of Birla Tires Ltd in tranches in the last one week on invocation of pledged shares.
On May 10, the private sector lender had acquired 1,45,63,787 equity shares equivalent to 10.214 per cent of paid-up equity share capital of Birla Tires Ltd on invocation of pledge of shares.
“…the bank has in tranches sold 38,72,595 shares of Birla Tires Ltd during the period May 11, 2022 to May 17, 2022,” IndusInd Bank said in a regulatory filing.
After the sale of shares, the bank’s holding now stands at 1,06,91,192 equivalent to nearly 7.50 per cent stake in Birla Tires, as per data provided by the bank.
Shares of Birla Tires held by Manav Investment & Trading Company were pledged with IndusInd Bank for securing the outstanding dues under Emergency Credit Line Guarantee Scheme (ECLGS) facility from the bank to the borrower company — Cygnet Industries Limited (CIL).
However there was a fall in security value, following which the borrower and pledger both voluntarily requested for sale of Birla Tire shares pledged with the bank and adjust the proceeds towards part prepayment of the ECLGS loan.
Part of Kesoram Industries, Birla Tires is into manufacturing of tires for automobiles, motorcycles, commercial vehicles, farm vehicles and heavy earth-moving machinery.
Stock of IndusInd Bank closed at Rs 902.90 apiece on BSE, down 0.11 per cent. PTI KPM ABM ABM
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