Torrent Pharma has said that its promoters have not pledged any equity shares they hold in the company for any purpose, and a surveillance action by stock exchanges was not warranted.
The promoters are obligated to hold a minimum 26 per cent shares and management control of Torrent Pharma during the period of loans the company has taken, it said.
The company was commenting on reports of the National Stock Exchange shortlisting five companies, including Torrent Pharmaceuticals, with higher levels of pledged shares by promoters for surveillance action.
"The promoters of Torrent Pharma have not pledged any equity shares they hold in TorrentPharma for any purpose," the company said in an emailed response to PTI.
Promoters, it said, "are obligated by virtue of certain covenants/negative covenants agreed by Torrent Pharma in the loan agreements executed with various lenders that the promoters shall continue to hold management control (inter-alia holding at least 26 per cent of the equity share capital of Torrent Pharma or otherwise) during the period such loans are outstanding. Further, such obligation is created in respect of loans raised by Torrent Pharma for the purposes of its business."
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