Real estate major Parsvnath Developers on Thursday said a ‘bear cartel’ might be involved in battering the company’s share price and there was no concern about sale of pledged promoter shares.
The stock has fallen sharply in the past few days and the share price has halved in just six trading sessions amid speculations that the shares pledged by the promoters might be sold off soon by the lenders.
Rubbishing the speculation, Parsvnath Chairman Pradeep Jain said here on Thursday that there was no pressure on the lenders to sell the pledged shares.
“Whatever borrowing we have, we have pledged our shares as an additional security, along with hard security — our land and projects. We don’t have any pressure to sell promoter share,” Jain said.
However, noting that stock price was beyond the control of promoters, Jain said “maybe some cartel is involved”.
“I, as a promoter, bought three million shares from open market on Tuesday. That shows there is no concern of selling promoter share,” he added.
‘Bear cartel’ is a term used in the stock market to a group of people who try to bring down the share price of one or more companies through manipulative practices, either at the behest of some rivals or for buying the same shares at the lower levels later.
Parsvnath’s share price on Thursday fell by about 10 per cent to close at its lowest permissible limit for the day at Rs 36 apiece.
Promoters have pledged nearly 70 per cent of their shareholding in the company, which had a total debt of Rs 1,200 crore as on September 30.
