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ICICI Bank has acquired 1.8 crore shares of Deccan Chronicle Holdings Ltd by invoking the pledge on these shares, taking its holding to 9.81 per cent from 1.2 per cent.
The private sector banking major is one of the key lenders to the liquidity-hit DCHL, publisher of English daily Deccan Chronicle and other publications.
Prior to Wednesday’s announcement to the BSE, ICICI Bank held 25 lakh shares amounting to 1.2 per cent in DCHL and with this invocation of pledged shares of 1.8 crore shares, its total holding in the company will go up close to 10 per cent.
The media publishing company, which has loans over ₹4,000 crore borrowed from many banks is faced with litigation in several civil and criminal courts, debt recovery tribunals and also winding up petitions.
ICICI Bank is among its top lenders with significant exposure of over ₹490 crore.
Recovery proceedingsSeveral banks including Andhra Bank, Canara Bank, Indian Overseas Bank, State Bank of Hyderabad, Axis Bank and Indiabulls, have initiated recovery proceedings from the company.
Some of the company’s properties have been attached and proceedings to sell them have also been initiated.
The DCHL board had also taken steps to consider allocation of preferential shares to some of the lenders, which includes Kolkata-based SREI Infrastructure Finance.
On Wednesday, while ICICI Bank shares closed at ₹1,036.40 (up 0.55 per cent), DCHL shares ended at ₹3.24 (down 3.2 per cent), on the BSE.
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