Mumbai: Telecom products manufacturer Kavveri Telecom on Thursday said one of its promoters have pledged 5% stake of the company with the State Bank of India.
In a filing to the Bombay Stock Exchange, the company said one of the promoters C Shivakumar Reddy has pledged five lakh shares, representing 5.08% stake, with State Bank of India, Bangalore.
Further, the company added that “promoter has pledged shares with State Bank of India, Bangalore as a collateral security for the credit limits sanctioned to the company by the bank.”
The disclosure of pledged shares by Kavveri Telecom comes after market regulator Sebi asked promoters of listed firms to disclose the amount of shares pledged with lenders.
The regulator’s announcement comes in the wake of the Satyam scam, wherein promoter Ramalinga Raju had pledged nearly all his shares — whose prices he had inflated by falsifying profits.
Shares of Kavveri Telecom were trading at Rs34.85, down 1.27% on the BSE.