International Conveyors promoters pledge 64% stake for ₹498 crore loan
- Promoters pledged 63.93% of International Conveyors' equity shares
- Encumbrance secures ₹498 crore term loan for Zenox Technology Services
- Loan proceeds to fund acquisition of Elpro International Limited shares
- Security cover ratio stands at 0.66 against the loan amount
- Total promoter holding is now 91.03% encumbered
*this image is generated using AI for illustrative purposes only.
Promoters of International Conveyors have created an encumbrance over 63.93% of the company’s total share capital. The pledge covers 4,07,73,335 equity shares held by key promoter entities and individuals.
The disclosure, filed with stock exchanges on August 27, 2026, relates to agreements executed on July 11, 2026. The encumbrance serves as security for a rupee term loan facility availed by Zenox Technology Services Private Limited.
Pledge Details
The creation of encumbrance affects five promoter group entities and individuals. Prior to this event, 50.69% of the share capital was already encumbered. The new pledge increases the total encumbered stake to 63.93% of the total share capital.
| Promoter Entity | Shares Encumbered | % of Total Capital | Reason |
|---|---|---|---|
| I G E (India) Private Limited | 2,92,87,560 | 45.92% | Security for term loan |
| Surbhit Dabriwala | 80,83,355 | 12.67% | Security for term loan |
| Amaranth Daksha Private Limited | 24,15,000 | 3.79% | Security for term loan |
| R.C.A Limited | 6,27,520 | 0.98% | Security for term loan |
| Yamini Dabriwala | 3,59,900 | 0.56% | Security for term loan |
The lender is Kotak Mahindra Bank Limited, with CTL Trusteeship Limited acting as the security trustee. The disclosure was made pursuant to Regulation 31 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
Loan Utilization and Coverage
The borrowed amount of ₹498 crore is intended for part-financing the acquisition of equity shares in Elpro International Limited. The value of the pledged shares on the date of the agreement was ₹327.45 crore.
This results in a security cover ratio of 0.66, indicating that the market value of the pledged shares is lower than the loan amount secured against them. The facility agreement includes covenants regarding non-dilution of the shareholding of individual promoters Surbhit Dabriwala and Yamini Dabriwala.
What the Numbers Show
The encumbrance now covers 91.03% of the total promoter holding of 4,47,93,517 shares. With only 8.97% of the promoter stake remaining free of encumbrances, the promoter group has minimal unpledged equity left to offer as additional collateral for future borrowings.
Historical Stock Returns for International Conveyors
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.02% | +4.21% | +6.78% | +1.02% | -9.06% | 0.0% |
How might the low security cover ratio of 0.66 impact International Conveyors' ability to secure future financing or refinance existing debt?
What are the potential risks to minority shareholders if the promoters face margin calls due to a decline in the company's share price?
How will the acquisition of Elpro International Limited affect International Conveyors' operational synergy and financial performance in the coming fiscal years?
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