IndusInd Bank has sold 38 lakh mortgaged shares of Birla Tire

IndusInd Bank said on Wednesday that it had sold more than 3.8 million shares of Birla Tires Limited in the past one week in a call for bonded shares.

On May 10, the private sector lender acquired 1,45,63,787 equity shares in a bid to equivalent to 10.214 per cent of the paid-up equity share capital of Birla Tires Limited.

“… the bank has sold 38,72,595 shares of Birla Tires Limited between May 11, 2022 and May 17, 2022,” IndusInd Bank said in a regulatory filing.

Following the sale of the shares, the bank’s holdings now stand at 1,06,91,192 which is equivalent to about 7.50 per cent stake in Birla Tires, according to the bank.

Lenders – Cygnet Industries Limited (CIL) – have pledged to IndusInd Bank to secure arrears under the Emergency Credit Line Guarantee Scheme (ECLGS) on shares of Birla Tires held by Manab Investment and Trading Company.

However, security prices plummeted, prompting both the borrower and the mortgagee to voluntarily request the bank to sell the pledged Birla tire shares and ECLGS adjusted the income for partial repayment of the loan.

Part of Kesoram Industries, Birla Tires manufactures tires for automobiles, motorcycles, commercial vehicles, farm vehicles and heavy earth-moving machinery.

IndusInd Bank’s stock fell 0.11 percent to close at Rs 902.90 on the BSE.