JK Tyre & Industries on Monday said its promoters have taken control of pledged shares they had pledged with KKR Capital by repaying a Rs 200 crore loan last month.
JK Tyre promoters, including Bengal and Assam Company, had borrowed Rs 200 crore from KKR Capital in the month of March 2019.
JK tyres had raised this money through issue of equity shares on preferential basis to its promoters and promoter group.
The amount was borrowed for a period of four years with a lock- in-period of one year by pledging JK Tyre shares owned by the group promoters. The loan amount was to be repaid by March 2023.
"The decision to repay the loan and get the shares back was taken keeping in mind the interest of share-holders and instill confidence in investors associated with JK Tyre; despite odds in the market," JK Tyre & Industries said in a statement.
While the first installment of Rs 50 crore were returned on August 20, 2019, the remaining principle of Rs 150 crore was returned on August 30, it added.
As on date, the entire lot of shares pledged against the sum borrowed from KKR is back with the promoters, JK Tyre said.
Despite, non-favourable market conditions, the promoters decided to return the money and take control the shares pledged with KKR, it added.
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