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DCHL promoters pledge 54% to Future Capital


27 Jun 2011
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Mumbai: The promoters of Deccan Chronicle Holdings Ltd (DCHL), Hyderabad-based publisher of newspapers and owner of Indian Premier League (IPL) team Deccan Chargers, have pledged 54 per cent stake to Future Capital Holdings Ltd.

The promoter holding in DCHL at the end of June 2012 was 73.83 per cent with T Venkaram Reddy, T Vinayak Ravi Reddy and P K Iyet owning 24.61 per cent stake each, according to information on the National Stock Exchange.

In a filing to the stock exchanges, Future Capital Holdings said over 112.8 million shares (or 54 per cent) of DCHL have been pledged by the promoters as part of collateral for funds borrowed by DCHL and a company named, Aviotech Private Ltd. The amounts of borrowings by DCHL from Future Capital were not disclosed.

DCHL's annual report for 2011-12 is not available. According to the company's 2010-11 annual report, DCHL had loans of Rs 3.13 billion but also had cash and bank balances of Rs 7.03 billion as on March 31, 2011.

DCHL shares fell 19 per cent on the Bombay Stock Exchange to close at Rs 18.55 per share on the pledging of a substantial portion of the promoter shareholding. DCHL's share price has fallen from a high of Rs 73.50 per share as on July 29, 2011.

The market value of the 54 per cent of the shares pledged works out to Rs 2.43 billion.

DCHL is the publisher Deccan Chronicle, a leading English newspaper in South India with a circulation of over 1.45 million copies per day across Andhra Pradesh, Tamil Nadu, Karnataka and Kerala. DCHL also publishes 'Asian Age', an English daily newspaper in Mumbai, Delhi, Kolkata, and London, a financial English daily 'Financial Chronicle' from Delhi, Mumbai, Hyderabad, Bangalore and Chennai and a Telugu Daily, weekly, monthly, all titled 'Andhra Bhoomi' in Andhra Pradesh. DCHL also owns a chain of 50 retail stores of lifestyle products, including books, music, stationery, gifts, toys, pens, and eye ware.
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