Kavveri promoters pledge shares for loans

The promoters of Bangalore-headquartered Kavveri Telecom have pledged 500,000 shares of the company with the State Bank of India. The shares have been pledged with the bank as collateral security for the credit limits sanctioned by the bank to the company, according to an official statement.

The company said SBI Bangalore had sanctioned a credit limit of Rs 60 crore in the fiscal 2007-08. The company had approached the bank for the credit limits to meet their working capital requirements. The company had to disclose the pledging of share by the promoters as per the recent Sebi guidelines.

Market regulator Sebi has asked the promoters to disclose details of pledged shares if the same exceeds 25,000 shares in a quarter or one per cent of the total shareholding or voting rights of the company, whichever is lower.

The promoters group led by Kavveri Telecom's Managing Director C Shivkumar Reddy holds nearly 15 per cent in the company.