Future bags 54% Deccan Chronicle stake

Deccan Chronicle said its promoters pledged their majority shareholding to Future Capital.

Written by Agencies | Hyderabad | Published: July 27, 2012 8:36:48 pm

Deccan Chronicle Holdings Ltd,which owns English daily Deccan Chronicle,today said its promoters have pledged their majority of shareholding to Future Capital.

In a filing with bourses,Deccan Chronicle Holdings Ltd said its promoters – T Venkattram Reddy,T Vinayak Ravi Reddy and PK Iyer – together have pledged 54 per cent of their holding (11,28,51,000 shares) in the company on July 26.

While the company did not elaborate on the financial details of the transaction,based on the closing share price of Rs 22.9 apiece on July 26 at BSE,the promoters are estimated to have raised Rs 258.43 crore.

Shares of Deccan Chronicle today tanked 19 per cent on BSE to hit the all time low of Rs 18.55 apiece,just above the lower circuit price of Rs 18.35.

The promoters together held 73.83 per cent in the company and were individually holding 24.61 per cent each before pledging of the shares.

After the pledging,the three promoters are left with unpledged shares of 6.61 per cent each,or together 19.83 per cent stake in the company.

Public,including FIIs,DIIs and bodies corporate,hold 26.17 per cent in the company.

According to the filing on the BSE,the shares were pledged as a part of collateral encumbrance created in consideration of borrowings by Deccan Chronicle Holdings Ltd and Aviotech Private Ltd.

It may be mentioned that two days ago,Deccan Chronicle had informed that its Board of Directors of at its meeting held on July 20 had accepted the resignation of N Krishnan as Managing Director and also as Director.

The board had agreed to relieve him from responsibilities with effect from July,29.

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