IndusInd Bank acquires 70 lakh shares in Mcleod Russel

NEW DELHI: Private sector IndusInd Bank has acquired over 70 lakh shares in tea company Mcleod Russel after invoking pledged shares of the company to recover its dues.

"The bank had yesterday, June 24, 2021, pursuant to invocation of pledge of shares, acquired 70,67,500 equity shares of Mcleod Russel India Ltd," IndusInd Bank said in a regulatory filing on Friday.

Equity shares of the tea company, held by Ichamati Investments Ltd, were pledged with the bank for securing the outstanding dues of borrower Mcleod Russel India Ltd (MRIL).

Ichamati Investments Ltd held a 16.39 per cent stake in Mcleod Russel as a promoter by the end of March 2021, as per data on BSE.

The bank has invoked the pledge held on the shares for recovery of its dues from MRIL, the filing said.

Last year in August, the lender had acquired 7.5 per cent (78,32,253 shares) in McLeod Russel India Ltd by invoking pledged shares following default by the borrower.

The net worth of Mcleod Russel was Rs 1,619 crore as of March 31, 2021, and its turnover was Rs 1,111.87 crore.

The Kolkata-based company has reported a consolidated net loss of Rs 52.39 crore in the fiscal ended March 2021. It narrowed from FY20 net loss of Rs 147.79 crore.

Shares of IndusInd Bank closed 1.11 per cent higher at Rs 1012.70 apiece on BSE. Mcleod Russel was down by 4.97 per cent at Rs 33.45 per scrip.