New Delhi:
IDBI Trusteeship Services Ltd (
ITSL) has sold 12.5 lakh equity shares of
Max Financial Services through an
open market sale.
The shares were released on the instruction of a lender on July 2 by ITSL, which is acting as a security trustee for various NCDs, Max Financial said in a regulatory filing on Monday.
The 12.5 lakh shares are equivalent to 0.47 per cent equity stake.
Max Financial did not name the lender upon whose instruction the said number of shares, which were pledged by it under a share pledge agreement, were released by ITSL.
Under the share pledge agreement, over 2.3 crore equity shares (8.55 per cent) are in the nature of encumbrance (pledge/lien/non-disposal undertaking).
ITSL said it is a security trustee and is holding the shares by way of share pledge as security for the benefit of lenders.
"We do not have any intention of making investment in shares or acquisition of shares for trading. ITSL needs to sell the pledged shares only when the borrower has committed default in payment of interest or repayment of principal and in no other case," ITSL said.
The sole purpose of the sale is to recover the defaulted dues of the lenders and not for making any gain, it added.
It is not the business or activity of ITSL to deal in any shares. ITSL does not operate and acquire any shares by purchasing or buying from the securities market, it said further.
Max Financial Services Sponsor Family in an email response, post the publication of the story, said: “There has been no sale of pledged shares of Max Financial Services as reported in the story. On the contrary 12.5 lakh pledged shares have been released back to us through ITSL resulting in reduction in pledged shares.”
Max Financial Services shares settled at Rs 560 on BSE, up 0.87 per cent from the previous close.