IndusInd Bank on Wednesday said it has sold over 38 lakh shares of Birla Tyres 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 Tyres Ltd on invocation of pledge of shares.
''...the bank has in tranches sold 38,72,595 shares of Birla Tyres 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 Tyres, as per data provided by the bank.
Shares of Birla Tyres 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 Tyre shares pledged with the bank and adjust the proceeds towards part prepayment of the ECLGS loan.
Part of Kesoram Industries, Birla Tyres is into manufacturing of tyres 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.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today