Nine Tata group firms’ pledge shares worth Rs 10,000 cr
Promoters of three more Tata group companies, including Tata Communications, today disclosed their share pledging details, taking the total Financial crisis Formula for successful biz India Inc on crossroads amount raised by promoters of the nine firms to nearly Rs 10,000 crore, for meeting the group’s long-term fund requirements.
In aggregate, the value of the 123 crore shares pledged by the promoters has been estimated to be about Rs 10,000 crore as per today’s closing price of the nine firms — Tata Communications, Tata Tea, Tata Chemicals, Tata Motors, Tata Coffee, Tata Steel, Tata Power, Tata Teleservices (Mah) and Indian Hotels.
Yesterday, six Tata group firms had revealed their share pledging details.
Meanwhile, the group’s holding entity Tata Sons had yesterday said: “It (share pledging) is not a new practice; it has been existing since the age of joint stock companies. It has been done primarily for long-term funding requirements of Tata Sons.”
Tata Communications today said two of its promoters, Tata Sons and Pantone Finvest, have pledged three crore shares, representing a 10.53 per cent stake in the company.
Estimated at today’s average market price, the shares pledged would have fetched Tata Sons over Rs 1,329.65 crore.
Meanwhile, Tata Tea said its main promoter Tata Sons has pledged 70 lakh shares, representing 11.32 per cent stake in the company with lenders.
Calculated on the basis of the current market price of Tata Tea scrip, the pledging would have fetched the promoters over Rs 389 crore.
Source: Economic times