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Kalpataru Power sizzles after partial release of pledge shares

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Capital Market
Last Updated : Dec 12 2019 | 2:50 PM IST

Kalpataru Power Transmission rose 3.49% to Rs 424.55 after partial release of pledged shares by the company's promoter.

The company's promoter, Parag Munot released 40 lakh pledged equity shares, or 2.58% equity, on 11 December 2019. Shares were pledged in the favour of IFCI. The announcement was made during market hours today.

Parag Munot held 4.77% stake in Kalpataru Power as of 30 September 2019. Currently, his 25.35 lakh shares, or 1.64% equity, are still pledged.

Pledging of shares is done by promoters of the company to secure loans for meeting working capital, acquisition costs or other financial needs. Pledged shares are used as collateral by lenders for giving out loans.

The stock snapped its eight day losing streak. The stock lost 10.69% in eight trading sessions from its previous closing high of Rs 459.35 on 29 November 2019. The stock has lost 11.76% in just three months.

On a standalone basis, Kalpataru Power Transmission's net profit rose 39% to Rs 127 crore on a 25% increase in net sales to Rs 1967 crore in Q2 September 2019 over Q2 September 2018.

KPTL is a specialized EPC companies in India engaged in power transmission & distribution, oil & gas pipeline, railways, infrastructure development, civil contracting and warehousing & logistics business with a strong international presence in power transmission & distribution. The company is currently executing several contracts in India, Africa, Middle East, CIS, SAARC and Far East.

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First Published: Dec 12 2019 | 1:54 PM IST

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