The promoter holding in McLeod Russel India Ltd (MRIL), the largest bulk tea producer in the country, has fallen to 10.07 per cent at the end of the June quarter.
The Khaitan family of Williamson Magor Group is the promoter of the company, which is in some financial trouble because of a high debt overhang.
The holding of the family fell 7.41 per cent during the June quarter from 17.48 per cent after creditors who held shares as collateral against loan invoked them. A year ago, the promoters held a 25.82 per cent stake in McLeod Russel.
The sell-off in pledged shares mirrored the predicament of Eveready, the largest dry cell battery maker from the house of the Khaitans.
As the share price rose in Eveready, creditors invoked pledged shares taking advantage of the rally in the scrip, leaving the promoters with a paltry stake of 4.77 per cent at the end of the March quarter.
Creditors took advantage of a similar situation in the MRIL counter when the price more than doubled in three months. The stock closed at Rs 34.25 on the BSE on Wednesday.
The company has presented a comprehensive debt restructuring proposal to lenders who are considering it. However, it is also being tried at company law court for admission into insolvency.
