Homegrown tyre-major JK Tyre on Monday announced that its promoters have taken control of shares they had pledged by repaying a Rs 200 crore loan in full.
The company’s promoters had taken the loan from KKR Capital in March 2019 to infuse the capital in it through the issue of equity shares on preferential basis to the promoters and promoter group.
“The promoters of JK Tyre, Bengal and Assam Company LTD — a holding company of the group comprising family members — had borrowed Rs 200 crore from KKR Capital in March.The amount was borrowed for a period of 4 years with a lock in period of one year by pledging JK Tyre shares owned by promoters. The loan amount was to be repaid by March 2023,” it said.
However, the promoters had decided to repay the loan and get the shares back. “(The decision) was taken keeping in mind the interest of share-holders and instill confidence in investors associated with JK Tyre; despite odds in the market,” the company said.