Mumbai: Promoters of have further pledged their shares in the company for raising capital from financial lenders. Kainaz Daruvala, a member of the promoter group of Sterling, has pledged 4.9% of her shares in the company, worth Rs 221 crore, to IIFL Wealth Finance. Sterling informed stock exchanges that Daruvala pledged company shares as collateral for “supporting cash flow requirements of the promoter group”.
Another member, Shapoorji Pallonji and Company (SP), had already pledged 37.2% of its stake in Sterling with HDFC way back in 2019. With the latest development, promoters have pledged 42% of Sterling as collateral for loans, listing the company among the high-pledged promoter holdings. Daruvala now holds 3.1% of unencumbered stake in Sterling following the changes. Husband Khurshed Daruvala, also the chairman of Sterling, owns 9.8% of the company.
Sterling’s shares gained nearly 10% to end at Rs 311 by close of Thursday’s trade on the BSE, giving it a market capitalisation of Rs 4,990 crore. SP holds 13.3% of unencumbered Sterling shares, which were listed on the bourses in 2019. The promoters owe Rs 950 crore to Sterling, for which the company has given them time till September to clear the amount. They have been servicing the interest component and the Rs 950 crore is the principal amount. This was pared from Rs 1,200 crore after the promoters sold two solar assets to Adani Green in March.
The promoters had offered assets, including immovable properties, as security towards the pending amount. Besides, they have been initiating multiple plans to clear the dues. In March, Khurshed sold 4.9% in Sterling (from his total 14.7%) in the open market for Rs 200 crore. Recently, SP sold its stake in Schott Kaisha, a packager of pharma products, to Serum Institute of India.