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ICICI Bank too invokes pledged shares of Karvy Data Management

Our Bureau Hyderabad | Updated on December 21, 2019 Published on December 21, 2019

Move aimed at recovering dues from broking business

ICICI Bank has acquired 18.75 per cent equity in Karvy Data Management Services Limited (KDMSL) by invoking the pledged shares towards recovery of dues from Karvy Stock Broking Limited.

The disclosure comes a day after a similar announcement made by Bajaj Finance which announced the acquisition of 10 per cent equity in KDMSL by invoking the pledged shares.

According to a regulatory filing made with the BSE, ICICI Bank has informed that the shares of the company KDMSL were pledged with it towards securing outstanding dues of Karvy Stock Broking Ltd (KSBL).

The shares of KDMSL were pledged with the bank for securing the outstanding dues of KSBL, the borrower company.

The acquisition 45,00,000 shares of face value of ₹10 an equity share was made by ICICI Bank towards the payments which were defaulted by Karvy.

The unlisted public company KDMSL was founded in the year 2008 and closed the financial year 2018-19 with a turnover of ₹765.34 crore and profit of ₹32.9 crore on a standalone basis during 2018-2019. The company is engaged in providing IT and data management solutions for the parent Karvy Group and other companies.

ICICI Bank informed that the shares have been acquired upon invocation of the pledge. The filing has been done after prescribed internal procedures for approval of pledge invocation have been concluded, the bank said.

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Published on December 21, 2019
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