Tata group companies too have entered the list of companies pledging promoters shares. Tata Steel, Tata Power and Tata Teleservices Maharashtra (TTML) announced that their promoter, Tata Sons, has pledged shares to raise funds that at current rates would be about Rs 6,500 crore.
In its filing with the National Stock Exchange, Tata Steel, disclosed that the company’s promoter has pledged 9.89 crore shares, or 13.53% of the total equity capital, TTML has disclosed that its 94.28 crore shares or 49.7 % of its total equity capital where pledged to provide security for its borrowings. Similarly, Tata Power also announced that promoter Tata Sons had, on January 28, 2009, pledged around 3.23 crore shares representing 14.59% of the company’s equity.
Do you know for sure if these funds will be usd for the respective company’s project or are they using it for the interest of Tata Sons ?