Offloading of pledged shares only market gossip: Parsvnath

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Offloading of pledged shares only market gossip: Parsvnath

News of promoters offloading their pledged shares in the market is only market gossip, says chairman of the company, Pradeep Jain to CNBC-TV18.

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Due to news of promoters' pledged shares being offloaded in the market, it has only been sellers for Parsvnath Developers in the past few days. However, chairman of the company, Pradeep Jain says that this news is only market gossip.

"I personally acquired three million shares from the market yesterday. If I had a margin call on that, I would not able to purchase shares. So all this is market gossip," he said exclusively to CNBC-TV18. According to him, a cartel is behind the continuous pounding in the stock.

Below is an edited transcript of his interview with Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video.

Q: Can you just confirm for us whether in the course of last few days the promoters have had to sell any of their pledged shares? I think out of your 68%, nearly 90% stands pledged. You have had multiple circuits down situations on your stock, so has the promoter had to sell any stake?

A: Of the promoter equity, less than 70% is pledged as on today. All the promoters pledged additional security with the lenders, along with the hard security. We don't have any kind of fear to sell our share from the side of any of the lender.

I personally acquired three million shares from the market yesterday. If I had a margin call on that, I would not able to purchase shares. So all this is market gossip. We don't have any kind of margin call on us. As on yesterday market close, we are not short on any kind of the margin. Whatever is happening in the market is beyond our control.

Yesterday night I had a call with my international investors including Fidelity, which owns 5% of the equity, another investor that owns more than 2% equity and they are buying on regular basis from the market. As a promoter, what we understand is that there is some cartel that has continuously been hammering midcap stocks and they have been playing in out stock as well.

Q: Have you checked with any of the entities to which your stock is pledged and whether they have had reason to sell at all for any reason over the last two weeks where your stock has been so volatile?

A: We have pledges our stock to those places where we got money like Punjab National Bank consortium, IDBI trustee, Axis Bank trustee and we have also given shares as an additional security. As I understand as of now, all the lenders have their full security and shares of additional security along with hard security. Like our large investors, they are not on the selling side, but towards they buy.