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IFCI has announced that it has increased its stake in debt-ridden apparels company Koutons Retail India from 5.89 per cent to 10.24 per cent by invoking the pledge of shares announced by the company promoters.
The promoters of Koutons Retail had pledged 98 per cent of their shares to the lenders in 2010. The promoters hold 32 per cent of the total paid-up equity in the company. The company's share price went up by around 10 per cent to Rs 38.05 on Thursday. The day's high was also the weekly high at Rs 38.25. The day's low was Rs 34.80.
Koutons Retail's share price was at Rs 300 levels at the beginning of fiscal 2010. But analysts feel that the aggressive growth policy of the company led to the valuation of the company's share price coming down to the current levels of around Rs 30.
Promoters' pledging of shares has been on the rise in the last six consecutive quarter as the stock price crashed. Promoters' have also been diluting their stake in the company, mainly to meet pledging commitments. From 66.63 per cent stake, promoters' holding now reduced to 32 per cent.
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