A lender bank has taken possession of assets of Jagran Prakashan Private Ltd, publisher of Indore edition of Dainik Jagran, due to non-payment of overdue loan amount.
The bank took possession of the assets under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, Jagran Prakashan Ltd said in a communication to the Bombay Stock Exchange. The company had taken a term loan of Rs 8.05 crore from the bank.
In its annual report for the year 2007-08, the company has disclosed that Jagran Prakashan Private Ltd has been incurring losses. Jagran Prakashan Ltd and other group of shareholders were under litigation.
The action of the bank would not have any impact on the operations of the company and its revenue, Jagran Prakashan Ltd added.
The share price of Jagran Prakashan declined 5.7% at Rs 48 as compared to the previous closing of Rs 50.90 on the BSE.