Tatas pledge shares in 3 more firms; Bajajs follow

With the Tatas announcing the details of share pledging by three more group companies,the current value of shares pledged by six group companies has touched Rs 7,300 crore....

Written by ENS Economic Bureau | Mumbai | Published: February 11, 2009 2:00:53 am

With the Tatas announcing the details of share pledging by three more group companies,the current value of shares pledged by six group companies has touched Rs 7,300 crore. A day after Tata Steel,Tata Power and Tata Teleservices (Maharashtra) Ltd said that their promoter Tata Sons had pledged shares in these companies to raise funds,Tata Motors,in a filing on the NSE,said Tata Sons had pledged 3.72 crore shares,or 8.15 per cent of the total equity capital held by the promoter.

Tata Sons Ltd holds 28.58 per cent in Tata Motors. As per the closing price of Tata Motors shares on the BSE on Tuesday,the value of the total number of shares pledged is Rs 516.52 crore. The shares of Tata Motors closed at Rs 138.85 on the BSE on Tuesday,down by 1.84 per cent. Another Tata company Indian Hotels Company said promoter Tata Sons had pledged 2.50 crore shares representing a 3.46 per cent stake,while Tata Coffee said its main promoter Tata Tea Ltd had pledged 107,35,982 shares representing 57.48 per cent stake. The market value of pledged Indian Hotels shares works out to Rs 100 crore and of Tata Coffee to Rs 160 crore.

To check recurrence of a Satyam-like situation,where the promoters had pledged shares in the company,market regulator Sebi had decided to make it mandatory for promoters (including promoter groups) of companies to make full disclosures if they pledge shares. “The Tatas were on an acquisition spree and expansion mode during the last two years. They might have resorted to various means of raising funds including pledging of shares,” said BSE dealer Pawan Dharnidharka.

Meanwhile,promoters of three Bajaj group companies — Bajaj Auto Ltd,Bajaj Holdings & Investment and Bajaj Finserv — have pledged their shares to repay loans up to Rs 365 crore. In separate filings to the BSE,two and three-wheeler maker Bajaj Auto said that four of its promoters had pledged a 2.57 per cent stake,while they have also pledged 3.82 per cent in Bajaj Holdings & Investment. The group’s financial services arm,Bajaj Finserv,said three of its promoters had pledged a 4.41 per cent stake.

Scrips of Tata group companies remained mostly unscathed though six group entities disclosed their share pledging details. Tata Power Company gained 1.90 per cent to settle at Rs 793.55 on the BSE. Shares of Indian Hotels gained 1.64 per cent to close at Rs 40.25. During the day,it had surged nearly three per cent to a high of Rs 40.75 on BSE. However,Tata Steel eased by 1.30 per cent to Rs 196.95.

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