Birla Tyres slumps 5% to 52-week low after IndusInd Bank sells 38 lakh shares, Auto News, ET Auto
Shares of Birla Tyres plunged 4.7% to a 52-week low after IndusInd Bank said on Wednesday that it has sold over 38 lakh shares of Birla Tyres in tranches in the last one week on invocation of pledged shares.
On May 10, the private sector lender had acquired 1,45,63,787 equity shares equivalent to 10.214% of paid-up equity share capital of Birla Tyres Ltd on invocation of pledge of shares, PTI reported.
Birla Tyres’ share price fell to a 52-week low of INR 9.05 as against INR 9.50 at previous close on the BSE.
”…the bank has in tranches sold 38,72,595 shares of Birla Tyres Ltd during the period May 11, 2022, to May 17, 2022,” IndusInd Bank said in a regulatory filing.
After the sale of shares, the bank’s holding now stands at 1,06,91,192 equivalent to nearly 7.50% stake in Birla Tyres, as per data provided by the bank, PTI reported.
Shares of Birla Tyres held by Manav Investment & Trading Company were pledged with IndusInd Bank for securing the outstanding dues under Emergency Credit Line Guarantee Scheme (ECLGS) facility from the bank to the borrower company — Cygnet Industries Limited (CIL).
However, there was a fall in security value, following which the borrower and pledger both voluntarily requested for sale of Birla Tyre shares pledged with the bank and adjust the proceeds towards part prepayment of the ECLGS loan.
Birla Tyres, which is a part of Kesoram Industries, is into the manufacturing of tyres for automobiles, motorcycles, commercial vehicles, farm vehicles and heavy earth-moving machinery.