Shares of tea company McLeod Russel were locked at 5 percent lower circuit at Rs 11.40, which was also a 52-week low, after lender acquired a stake in the company by invoking a pledge on shares.
There were pending sell orders of 10,005 shares, with no buyers available on the BSE at 1142 hours IST.
The invocation of pledge could be due to a sharp fall in the share price. The stock has crashed 86 percent in the last three months.
Mcleod said an intimation received from Vistra ITCL (India) that 19,00,000 equity shares (representing 1.82 percent of total paid-up equity) of Rs 5 each of company held by Vistra have been invoked by it on June 27, 2019.
Vistra ITCL (India) is a trustee for the joint lenders namely, 1) IL&FS Financial Services Ltd, 2) IL&FS Infrastructure Debt Fund and 3) Aditya Birla Finance Ltd.
Promoter Williamson Financial Services had pledged its 3.78 percent stake (out of 4.96 percent) with Vistra against borrowings. After the invocation of 1.82 percent stake, remaining 1.96 percent shareholding is still pledged with Vistra.
Overall promoter and promoter group held 32.85 percent stake in Mcleod Russel, of which 32.36 percent pledged for borrowings. After the invocation, 30.54 percent is still pledged with lenders.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
