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Private-sector lender, ICICI Bank has acquired 1.8 crore shares of Deccan Chronicle Holdings (DCHL) through the invocation of pledged shares on Wednesday. Post the acquisition, ICICI's stake in the media company jumped to 9.8% from 1.2% said a notice on the BSE website.
At Rs 490 crore, ICICI Bank has the largest exposure in the debt-laden media company. On Wednesday, the stock of DCHL was down 2.9% at Rs 3.25 per share. At the current market price, the value of the acquisition stands at Rs 5.85 crore.
In 2012, the Hyderbad-based media company defaulted on loans worth over Rs 4,000 crore taken from 28 banks. Most of the lenders have filed litigations against the company in the Andhra High Court and some have already started the process of securing their loans.
Earlier in the year, Andhra Bank, which has an exposure of about Rs 200 crore in the company attached two properties of DCHL reportedly worth Rs 160 crore. Indian Overseas Bank with its Rs 75 crore exposure and State Bank of Hyderabad with a Rs 50 crore exposure have also initiated the process of taking over DCHL properties to secure their loans.
Earlier this month, two cheques totalling Rs 100 crore submitted by the company to Axis Bank reportedly bounced causing the bank to file a case against the debt-ridden media company. Axis Bank has the second-largest exposure in the company at Rs 400 crore while Canara Bank has the third largest exposure at Rs 360 crore.
The DCHL Board had earlier in the year approved the sale of shares on a preferential basis to prospective investors.
