Kavveri promoters pledge 500,000 shares

The promoters of Bangalore based Kavveri Telecom stated have disclosed that they have pledged 500,000 shares of the company with the State Bank of India.

According to a bank official the shares are pledged as collateral security for the Rs60 crore credit limit in the fiscal 2007-08. The company had approached the bank for the credit limits to help meet working capital requirements.

The company has made the disclosure as per the recently-introduced SEBI guidelines asking companies to disclose details of pledged shares.

As per SEBI guidelines, promoters are required to disclose details of pledged shares if these exceed 25,000 shares in a quarter on one per cent of the total share holding or voting rights of the company, whichever is lower.

The promoters group led by managing director C Shivkumar Reddy holds nearly 15 per cent in Kavveri Telecom.

As per the financial results of the company announced earlier the net sales stood at Rs5280.2 lacs for the quarter ending 31 December 2008 as against Rs4300.5 lacs for the quarter ending 31 Decemeber 2007. The net profit stood at Rs353.8 lacs for the quarter ending 31 December 2008 as against Rs613.1 lakh for the quarter ending 31 December 2008. The company reported an EPS of Rs.3.52 for the quarter ending on 31 December 2008 as agaist Rs6.24 for the quarter ending 31 December 2007.