Tata Steel promoters pledge shares

Tata Steel today said two of its promoters -- Tata Sons and Tata Investment Corporation -- have pledged 9.89 crore shares, representing 13.53 per cent stake in the company, with lenders.

In a disclosure to the Bombay Stock Exchange, Tata Steel said its holding company Tata Sons has pledged 9.64 crore shares, representing 13.19 per cent stake, with lenders.

Besides, Tata Investment Corporation (TICL) has pledged 25 lakh shares, or 0.34 per cent, it added.

Tata Investment has pledged the shares as security for the Zero Coupon Convertible Bonds (ZCCBs) issued, which are fully convertible into equity shares of TICL.

Hence, the pledge cannot be invoked as no payment obligations arise from the issue of the ZCCBs, it added.

For the quarter ended December 2008, Tata Sons held 29.27 per cent stake in Tata Steel, while TICL held 0.43 per cent.

The total promoter holding in Tata Steel was close to 34 per cent at the end of December quarter, according to shareholder information available on BSE.

The disclosure follows market regulator Sebi's mandate that listed companies should disclose information about shares pledged by the promoter group.

Shares of Tata Steel closed at Rs 199.55, up 7.20 per cent on the BSE.