SKNL recovers 4% post pledge shares clarification

S. Kumars Nationwide Ltd (SKNL) is trading higher by 4% at Rs 53.20, after a 12% decline in yesterday's session, after the company clarified that all rumors regarding pledged shares were baseless.

“The equity shares held by the promoters have been pledged to nationalized banks who are the lenders of the company, only as additional collateral, and not as primary collateral. The security thus created is an additional collateral security in addition to the primary charge created on the fixed assets and current assets of the company, which are more than sufficient to cover the borrowings of the company,” the company said in a filing to the stock exchanges.

The company's promoters don't see any risk whatsoever of the above shares being sold in the open market by the lending institutions of the company. The company would like to confirm that neither promoters nor entities relating to promoters have sold any shares, it added.

The stock opened at Rs 53.10 and touched a high of Rs 53.65 on the NSE. A combined 1.46 million shares have changed hands on the counter in opening deals.