Pledged share sale pulls down Unitech promoter holding

Promoter holding in Unitech, the nation’s second-largest property developer, has dropped by 7 per cent since their September disclosure after lenders sold the shares pledged with them, according to analysts. The promoter holding in Unitech has fallen to 67.2 per cent in the December quarter compared with 74.3 per cent in the quarter ended September 30, according to the shareholding pattern disclosed by the company on the website of the National Stock Exchange. The Sanjay Chandra-led group’s attempt to raise money to repay dues had forced the promoters to pledge shares with lenders, who, in turn, sold the shares to recover their loans. The promoters are yet to disclose the total extent of pledged shares to stock exchanges even though market regulator Securities and Exchange Board of India (Sebi) has advised companies to make such disclosures to enhance transparency. However, Unitech sources maintain that the company is not obliged to disclose the same as the Sebi directive requires an amendment to the listing agreement of stock exchanges. Only last month, IFCI and Sicom had confirmed selling pledged shares of Unitech. The lenders did not assign any reason for the sale and neither did the company comment on the same. Unitech has also applied to FIPB to raise $1 billion by selling shares to overseas investors. A few analysts view the move as a positive development since it will help the company lower its debt to equity ratio.