Ok Play Limited, a company listed on the Bombay Stock Exchange (BSE), has reported that three of its promoters have pledged a significant number of shares as collateral for loans taken by the company. This development, disclosed in a filing to the BSE under SEBI regulations, marks a notable change in the company's shareholding structure.

Details of the Share Pledge

The pledged shares, totaling 13 million and representing approximately 4.14% of the company's total share capital, were pledged by three key promoters:

1. Rishab Handa (Promoter Director): Pledged 5 million shares (1.59% of total share capital)
2. Raghav Handa (Promoter): Pledged 5 million shares (1.59% of total share capital)
3. Anandana Handa (Promoter): Pledged 3 million shares (0.96% of total share capital)

All three pledges were created with Indian Overseas Bank as the entity in whose favor the shares were encumbered.

Purpose and Implications

The company stated that the encumbrance was created as collateral for loans taken by Ok Play Limited. This move suggests that the company is leveraging its promoters' holdings to secure financing, which could be used for various corporate purposes such as expansion, working capital, or debt refinancing.

Regulatory Compliance

The disclosure was made in compliance with Regulation 31(1) and 31(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulation requires promoters to disclose any creation, release, or invocation of encumbrance on shares of the target company.

Current Promoter Holdings

As per the disclosure, the promoters' holdings in Ok Play Limited prior to this event were as follows:

The pledge represents a portion of the holdings of Rishab, Raghav, and Anandana Handa, while not affecting the holdings of other promoters.

This share pledge transaction underscores the company's strategy in utilizing promoter holdings to secure financial resources. Investors and market watchers will likely monitor how this impacts Ok Play's financial position and future growth plans.

Ok Play Limited, a prominent player in the Indian manufacturing sector, has reported a significant development in its shareholding structure. The company's promoter director, Rajan Handa, has created a pledge on 1.5 million shares, representing 0.41% of the total share capital, in favor of IKR Choksey Financial Services Private Limited.

Pledge Details

The encumbrance, created on August 21, was undertaken for margin financial purposes, as disclosed in the company's filing under SEBI regulations for substantial acquisition of shares and takeovers. This move has increased Handa's total encumbered shareholding to 70.94 million shares, which accounts for 19.54% of the company's total share capital.

Promoter's Shareholding

Despite this pledge, Rajan Handa's overall holding in Ok Play Limited remains unchanged at 85.87 million shares, constituting 23.66% of the total share capital. This indicates that the pledge affects only a portion of his total shareholding.

Regulatory Compliance

The company has duly reported this transaction to the Bombay Stock Exchange (BSE) where its shares are listed. The disclosure was made in compliance with Regulation 31(1) and 31(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Other Promoter Holdings

The LODR disclosure also provides insights into the shareholding of other promoters:

This pledge by Rajan Handa is a significant development for Ok Play Limited, potentially impacting the company's financial dynamics and shareholder structure. Investors and market watchers will likely keep a close eye on any further developments related to promoter shareholdings and pledges.