New Delhi, Sep 2 : Despite odds in the market, JK Tyre promoters decided to return the money and take control of the shares pledged with KKR capital by repaying Rs 200 cr loan. It was stated on Monday that the promoters of JK Tyre, Bengal and Assam Company Ltd - a holding company of the group comprising family members - had borrowed Rs 200 crore from KKR Capital in the month of March 2019.
The amount was borrowed for a period of 4 years with a lock in period of one year by pledging JK Tyre shares owned by the promoters. The loan amount was to be repaid by March 2023. However, in the recent past the capital market had witnessed significant downturn. The JK Tyre stocks did not remain isolated in this situation either. But despite non-favourable market conditions the promoters decided to return the money and take control of the shares pledged with KKR.
While the first installment of Rs 50 crores were returned on 20th August, the remaining principle of Rs 150 crore was returned on 30th August 2019. As on the date the entire lot of shares pledged against the sum borrowed from KKR is back with the promoters. The decision to repay the loan and get the shares back was taken keeping in mind the interest of share-holders and instill confidence in investors associated with JK Tyre.UNI