Mumbai: Prince Pipes and Fittings’ promoters have repaid Rs 200 crore loan in escrow and there is no pledge or encumbrance on shares, the company said in a release on Tuesday.
Express Infra Projects LLP had issued bonds aggregating up to Rs 200 crore, of which Rs 191.5 crore was outstanding as on October 31, 2019.
For securing these bonds, the promoters of Prince Pipes and Fittings — Jayant Shamji Chheda, Tarla Jayant Chheda, Parag Jayant Chheda, Vipul Jayant Chheda and Heena Parag Chheda, and one of its promoter group entities, Jayant Shamji Chheda HUF, had on March 30, pledged certain equity shares in their capacity as first holders or second holders of such Equity Shares, aggregating 35 per cent of the equity share capital of the company on a fully diluted basis, with IDBI Trusteeship Services, acting as a trustee on behalf of the bondholders.
Further Parag Jayant Chheda and Vipul Jayant Chheda had also provided a non disposal undertaking with respect to an additional 16 per cent of the equity share capital of the company, on a fully diluted basis.
“The outstanding amount in relation to the bonds have been paid in full, in the escrow account, out of the proceeds from the offer for sale received by the company in relation to the offer in accordance with the cash escrow and sponsor bank agreement dated December 10, 2019, entered into between amongst the company, Jayant Shamji Chheda, Tarla Jayant Chheda, Parag Jayant Chheda, Vipul Jayant Chheda, JM Financial, Edelweiss Financial Services, HDFC Bank and Link Intime India,” the company said in a release.
Prince Pipes had a disappointing debut on the bourses on Monday, bucking the trend of robust listings in recent times. On Tuesday, the company’s shares slipped further, shedding 8.46 per cent to close at Rs 152. The shares were issued at Rs 178, and closed at 6.40 per cent.
Source: Economic Times
