Indo Tech Transformers Limited , has announced the release of 15,00,000 pledged shares by its promoter, Shirdi Sai Electricals Limited. This significant corporate action has resulted in a reduction of the promoter's encumbered shareholding from 44.12% to 30% of Indo Tech Transformers' total equity.

Key Details of the Transaction

Impact on Shareholding Structure

The release of pledged shares has notably altered the promoter's shareholding structure:

Transaction Details

SBI CAP Trustee Company Limited, acting as the Security Trustee for State Bank of India, executed the release of these pledged shares. This action follows the full repayment of outstanding dues by Shirdi Sai Electricals Limited, leading to the dissolution of the pledge created pursuant to the loan.

Company Background

Indo Tech Transformers Limited has a total of 1,06,20,000 equity shares with a face value of Rs. 10 each, aggregating to a total share capital of Rs. 10,62,00,000.

This corporate action demonstrates a significant reduction in the promoter's pledged shares, potentially indicating improved financial health or strategic decisions by the promoter group. Investors and market analysts may view this development as a positive sign, reflecting reduced financial obligations or increased confidence in the company's prospects.

The release of pledged shares often attracts market attention as it can impact investor perception and potentially influence stock price movements. Shareholders and potential investors of Indo Tech Transformers Limited may want to closely monitor any further developments or statements from the company regarding this transaction.

Indo Tech Transformers announced that its promoter, Shirdi Sai Electricals Limited, has pledged 27,61,200 equity shares, representing 26% of the total share capital of Indo-Tech Transformers, to Catalyst Trusteeship Limited. This pledge serves as security for Non-Convertible Debentures (NCDs) worth INR 600.00 crores and Optionally Convertible Debentures (OCDs) worth INR 150.00 crores.

Key Details of the Pledge

• The pledge affects Shirdi Sai Electricals' post-event holding, which is reduced to 61,52,236 shares (57.93% of total share capital).
• The pledged shares provide security cover for the debenture issuances, which will be used to repay existing lenders.

Debenture Issuance Parties

NCD Debenture Trust Deed

• Shirdi Sai Electricals Limited
• Catalyst Trusteeship Limited
• Mr. N. Visweswara Reddy

OCD Debenture Trust Deed

• Shirdi Sai Electricals Limited
• Catalyst Trusteeship Limited
• Mr. N Visweswara Reddy
• Neo Special Credit Opportunities Fund
• Neo Credit Opportunities Fund I
• Neo Special Credit Opportunities Fund II

The pledge is to be created within the timelines set out in the respective trust deeds, following the release of existing encumbrances once current lenders are repaid from the proceeds of the Non-Convertible Debentures.

This disclosure is made in compliance with Regulation 31 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, and SEBI's Master circular dated February 16, 2023 (Reference: SEBI/HO/CFD/PoD-1/P/CIR/2023/31).