The promoters of Deccan Chronicle Holdings have pledged 54 per cent of their stake in the company to Future Capital Holdings as part of collateral encumbrance created in consideration of borrowing by Deccan Chronicle Holdings and Aviotech. The total number of shares pledged amount to Rs 112.85 million.
Formerly promoted by Kishore Biyani, Future Capital Holdings has now been acquired by US-based private equity player Warburg Pincus.
Deccan Chronicle Holdings informed BSE and NSE on July 27, 2012 that its promoters – T Venkattram Reddy, T Vinayak Ravi Reddy and PK Iyer – had created a pledge on 11,28,51,000 shares amounting to 54 per cent to Future Capital Holdings on July 26, 2012, leaving them with 19.83 per cent unencumbered equity in the company.
Financial institutions and banks hold 6.98 per cent stake in Deccan Chronicle Holdings, while retail shareholders account for 10 per cent. Other companies’ stake amounts to 7.32 per cent.
Deccan Chronicle Holdings owns English daily Deccan Chronicle and Telugu daily Andhra Bhoomi. The company also owns the Deccan Chargers Indian Premier League (IPL) cricket team, as well as the Odyssey chain of retail stores.
On Friday, July 27, the company’s shares hit a new low of Rs 18.55 on the BSE, down 19 per cent from the close of Rs 22.90 on Thursday.
Each of the promoters hold an equal 24.61 per cent stake in the company and have pledged 18 percent of their individual stake each.
It may be recalled that N Krishnan had quit Deccan Chronicle as Managing Director last week, citing “personal reasons”. The company’s management informed the BSE that the Board had accepted his resignation.