Promoters encumber 63.93% shares in International Conveyors
Promoters of International Conveyors Ltd encumbered 4.07 crore shares (63.93% of equity) on July 11, 2026, to secure a facility for Zenox Technology Services Private Limited. The security, totaling INR 4,98,00,00,000, is provided in favour of CTL Trusteeship Limited and covers 91.03% of promoter holdings. Funds are intended for part-financing the acquisition of Elpro International Limited shares.
*this image is generated using AI for illustrative purposes only.
Promoters of International Conveyors Ltd have encumbered 4.07 crore shares, representing 63.93% of the company's total equity capital, to secure a facility for Zenox Technology Services Private Limited. The encumbrance, created on July 11, 2026, covers 91.03% of the total promoter shareholding. The security is provided in favour of CTL Trusteeship Limited, acting as the security trustee.
The disclosure was made by I G E (India) Private Limited pursuant to Regulation 31 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The encumbrance stems from a facility agreement dated July 11, 2026, between Zenox Technology Services Private Limited, Kotak Mahindra Bank Limited, and CTL Trusteeship Limited. Additionally, a deed of corporate guarantee was executed by I G E (India) Private Limited in favour of CTL Trusteeship Limited.
The facility involves contractual covenants related to the equity shares of International Conveyors Ltd, which may fall within the definition of encumbrance under Chapter V of the Takeover Regulations. The total amount involved against which the shares have been encumbered is INR 4,98,00,00,000. The value of the shares on the date of the agreement was INR 3,27,45,06,533.85, resulting in a security cover ratio of 0.66.
The borrowed amount is intended to part-finance the acquisition of equity shares of Elpro International Limited and cover expenses related to the facility. The promoters and PACs involved in the encumbrance include I G E (India) Private Limited, R.C.A Limited, Amaranth Daksha Private Limited, Surbhit Dabriwala, and Yamini Dabriwala.
Details of Encumbrance
| Promoter / PAC | Shares Encumbered | % of Total Share Capital | % of Promoter Holding |
|---|---|---|---|
| I G E (India) Private Limited | 2,92,87,560 | 45.92 | 100.00 |
| R.C.A Limited | 6,27,520 | 0.98 | 100.00 |
| Amaranth Daksha Private Limited | 24,15,000 | 3.79 | 100.00 |
| Surbhit Dabriwala | 80,83,355 | 12.67 | 100.00 |
| Yamini Dabriwala | 3,59,900 | 0.56 | 100.00 |
| Total | 4,07,73,335 | 63.93 | 91.03 |
The facility agreement and deed of corporate guarantee also contain a covenant requiring IGE to procure the non-dilution of shareholding for individual promoters Surbhit Dabriwala and Yamini Dabriwala. This specific covenant is being disclosed out of abundant caution as it may also constitute an encumbrance under the regulations.
Historical Stock Returns for International Conveyors
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.84% | -7.08% | -12.65% | -7.78% | -22.43% | +0.59% |
How will the high leverage ratio and the security cover ratio of 0.66 impact the financial stability of International Conveyors Ltd if the acquisition of Elpro International Limited faces delays?
What are the potential strategic synergies between International Conveyors Ltd and Elpro International Limited that justify the significant INR 498 crore debt exposure?
Could the encumbrance of 91.03% of promoter holdings trigger a change in control or open offer risks under SEBI regulations if the facility covenants are breached?
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