Realty majors reveal share pledging details

Realty majors reveal share pledging details
The Economic Times, February 17, 2009, Page 17

Unitech, Parsvnath, Omaxe, Ansal And Sobha Promoters Inform NSE

Our Bureau NEW DELHI

REAL estate developer Unitech declared on Monday that the promoters have pledged 49.48% of their total 64.4% stake in the company. Promoter holding in the company also fell by at least 3% since the beginning of this year to 64.4%. Other realty players, including Parsvnath, Omaxe, Sobha Developers and Ansal Properties and Infrastructure (API) too have informed NSE that promoters have pledged shares ranging from 13% to 64% of their company.

The latest data available with stock exchange confirms market speculation that promoters of realty firms have pledged a large percentage of their stake to financial institutions.

Unitech informed the stock exchange that “a very significant portion of the shares have been pledged as additional security for the loans availed by the company”. Promoters usually pledge shares as collateral for the secured loans from financial institutions as well as for their personal purposes.

Unitech did not declare the name of the financial institutions with which shares were pledged. But one Unitech executive suggested a large portion of shares have been pledged with IDFC, HDFC and JM Financial, although it couldn’t be verified independently.

According to the data made available by Unitech to NSE on Monday, the stake of promoter Ramesh Chandra and family has possibly reduced by 3% since the beginning of this year. The combined shareholding of Chandra’s three investment firms—Prakausali Investments, Mayfair Investments and Mayfair Capital—are 3% lower compared to the shareholding as on December 31, ‘08.

According to market traders, the decline in shareholding could be attributed to financial institutions selling pledged shares following a steep decline in share prices.

Delhi-based Parsvnath Developers too has declared that promoters have pledged 63.88% of total shares of the company. The promoters own 80.33% stake in Parsvnath, as on December-end. Also, Delhi-based Omaxe said promoters have pledged 13.19% out of their total 69.63% stake in the company. Ansal Properties and Infrastructure promoters have pledged 29.11% stake out of a total of 64.14%, mainly to IL&FS and HDFC. The promoters of Bangalore-based Sobha Developers, who own 50.06% in the company, have pledged 28.39% stake in the company.

MARKET PRESSURE

Unitech informed stock exchange that ‘a very significant portion of the shares have been pledged as additional security for loans availed by company’
A large portion of Unitech shares have been pledged with IDFC, HDFC and JM Financial
Decline in shareholding could be attributed to financial institutions selling pledged shares following a steep decline in share prices