Promoters face exit from KFA if pledged shares sold by lenders
Stock exchange data shows that while promoters hold around 36% in the company, 90.10% of it is pledged with various entities. Two promoter entities — United Breweries (Holdings) and Kingfisher Finvest India — have pledged their entire collective holding of around 25% in the airline.
Unfortunately for the lenders, they will not be able to recover much even after selling the entire chunk of shares as the total value is pegged at only R277 crore. Shares of KFA lost 5% on Wednesday to close at R10.58. The shares have lost over 60% in the last one year.
Interestingly, Vijay Mallya, who holds 1.87% or 1.51 crore shares in the company, has not pledged a single share out of his direct stake. Another promoter entity — UB Overseas — also has not pledged any share out if its 1.68% stake in the airline.
Market experts, while acknowledging the fact that promoters face the risk of losing control in the company, say that any kind of fire sale of the pledged shares would take some
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