Lender sells promoter's 8.44% stake in UB Group's MCFL

The lenders recently decided to begin the process of recovering their loans through sale of securities pledged with them amid huge accumulated losses and soaring debt levels of Kingfisher Airlines

Mangalore Chemicals and Fertilizers (MCFL) today said about 8.44% of the stake belonging to its promoter firm United Breweries Holdings has been sold by a lender.

UB group's lenders recently decided to begin the process of recovering their loans through sale of securities pledged with them amid huge accumulated losses and soaring debt levels of Kingfisher Airlines that is grounded since October 2012.

In a filing to the BSE, MCFL said the shareholding of the promoter firm United Breweries Holdings has come down to 16.07% from earlier 24.51% in the company "on account of invocation of pledge created in favour of lender".

MCFL, however, did not reveal the name of the lender which sold the United Breweries Holdings's 8.44% stake comprising one crore shares in the company on April 1.

Promoters -- United Breweries Holdings, United Spirit and McDowell Holdings -- together held a stake of 30.44% in MCFL by the end of December 2012, nearly 70% of their shares were pledged with various lenders.

On April 8, McDowell Holdings Ltd had sold 1.01% stake in the company for Rs 3.4 crore in the open market.

Last week, SBI group entity had sold over one crore shares (nearly 10% stake) in the MCFL, which was bought by rival Zuari Fertilisers.

At the BSE, shares of MCFL were trading down by 0.85% at Rs 40.90 at 1340 hours.