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Promoters of five Tata Group firms pledged 111 crore shares

Promoters of five Tata Group firms pledged 111 crore shares
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First Published: Tue, Feb 10 2009. 02 16 PM IST
Updated: Tue, Feb 10 2009. 02 16 PM IST
By PTI
Mumbai: The promoters of five Tata Group firms including Tata Steel, Indian Hotels and Tata Coffee have pledged nearly 111 crore shares, representing a significant part of their holdings, in each firm with lenders.
In aggregate, the value of the total shares of the five Tata Group companies pledged by the promoters has been estimated to be close to Rs7,000 crore as per yesterday’s closing price of the various firms.
Analysts believe the recent cross-border and multi-billion dollar acquisitions by the Tata Group have led the conglomerate to raise funds through several routes including pledging shares.
“(The) Tata Group, which was in an acquisition and expansion mode during the bull phase, had resorted to various means of raising funds that include pledging shares,” Ashika Stock Brokers’ research head Paras Bothra said.
There is no surprise element in such share pledging as the group is extremely leveraged and its businesses are cyclical in nature, Bothra added.
Indian Hotels Company today said one of its promoters, Tata Sons, has pledged 2.50 crore shares representing a 3.46% stake in the company, according to a disclosure filed to the BSE.
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First Published: Tue, Feb 10 2009. 02 16 PM IST