Deccan Chronicle scrip up on buzz of print business sale

The share price of Hyderabad-based Deccan Chronicle Holdings Limited (DCHL), which is facing liquidity crisis, increased 1.88 per cent to Rs 13.55 on the Bombay Stock Exchange (BSE) on Friday amid reports that it was planning to hive off its print business.

DCHL publishes Deccan Chronicle English daily, Andhra Bhoomi Telugu daily and a business newspaper Financial Chronicle. For the past 10 trading days, the company witnessed a fall in its share price, which had weekly high of Rs 18.35 and monthly high of Rs 33.40

According to CNBC- TV18, investments bankers are already looking for buyers either for a controlling stake or an asset sale of DCHL’s print business.

DCHL, which also owns the Indian Premier League team Deccan Chargers and Odyssey retail chain, has reportedly borrowed over Rs 1,630 crore from various banks and financial institutions.

Earlier, DCHL had stated that multiple parties evinced interest in acquiring stake in Deccan Chargers and it had appointed Religare Capital Markets to advise on the suitability of the offers.

According to the declarations before the Registrar of Companies in Hyderabad, DCHL promoters have mortgaged several immovable properties with YES Bank and borrowed around Rs 194 crore.

This apart, the promoters have pledged 54 per cent of the company's shares to Future Capital Holdings Limited as a part of collateral created in consideration of borrowing by the company. An additional 14.4 per cent of the shares was pledged to Religare Finvest and Religare Enterprises.

However, with Karvy Stock Broking company lodging a police complaint against DCHL promoters on the counts of cheating and forgery, the share pledging episode has now become a matter of criminal investigation.

Future Capital is expected to come out with a public statement shortly on its loan agreement with DCHL promoters and the issues raised by Karvy.