IndusInd Bank invokes pledge on Ichamati's 5 mn shares in Mcleod Russel

Private sector IndusInd Bank on Wednesday said it has acquired a 4.79 per cent stake in embattled tea plantation firm McLeod Russel India by invoking 5 mn pledged shares of the company

Private sector IndusInd Bank on Wednesday said it has acquired a 4.79 per cent stake in embattled tea plantation firm McLeod Russel India by invoking 50 lakh pledged shares of the company.

"We wish to inform that the bank had yesterday, i.e., September 28, 2021, pursuant to invocation of pledge of shares, acquired 50,00,000 equity shares of McLeod Russel India Ltd," IndusInd Bank said in a regulatory filing.

The acquisition of 50 lakh shares represents 4.79 per cent of the paid-up equity share capital of McLeod Russel.

Held by Ichamati Investments Ltd, equity shares of McLeod Russel India Ltd (MRIL) were pledged with IndusInd Bank for securing the outstanding dues of the tea plantation company.

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

Calculated at the closing price of Rs 32.20 per share of MRIL on September 28, 2021, on BSE, the invoked shares would have fetched the lender Rs 16.10 crore.

Earlier in June this year, IndusInd Bank had acquired over 70 lakh shares in the tea company after invoking pledged shares of the company to recover its dues.

Headquartered in Kolkata, McLeod Russel was incorporated in 1998. It is engaged in the cultivation and manufacturing of tea with 31 tea estates in Assam Valley and two in the Dooars region of West Bengal. It has three factories in Vietnam and six estates in Uganda.

The net worth of MRIL stood at Rs 1,619.04 crore as of March 31, 2021. The company's turnover was Rs 1,111.87 crore in FY21.

Owned by the Khaitan family of Kolkata, Ichamati Investments Ltd is one of the promoters of MRIL, which held a 9.63 per cent stake in the company as of June 30, 2021, according to data on BSE.

The tea plantation company is facing insolvency proceedings as a financial creditor Techno Electric & Engineering Company moved the National Company Law Tribunal (NCLT) Delhi bench to recover its dues of Rs 100 crore.

However, the two parties have arrived at a settlement, following which the application has been withdrawn from the tribunal.

"We wish to inform you that the NCLT, principal bench, New Delhi vide its order dated 8th September 2021 has dismissed the appeal made by the company as the matter has been withdrawn," McLeod Russel had said in a regulatory filing on September 10.