Religare emerges largest shareholder in Deccan Chronicle Holdings Ltd

Adding to the woes of the promoters of cash-strapped media house Deccan Chronicle Holdings LtdBSE -4.96 % (DCHL) who recently lost controlling stake in the company by pledging a part of holding, a financial institution - Religare Finevest, has emerged the largest shareholder. 

Each of the three key promoters - Tikkavarapu Venkattram Reddy, T. Vinayak Ravi Reddy and PK Iyer, who held 24.61% each and together 73.83% in June 2012, now hold around 12.5% each or 38.4% together. 

The ailing publishing company, which on Tuesday acknowledged the promoters losing controlling stake, said some of the lenders invoked pledged shares that dragged down the promoters' holding slipping by nearly half to 38.4% from a high of 78.83%. However, the company did not divulge the identity of the lenders who invoked pledged shares. 

Religare Finevest now holds 14.48% in DCHL, as per the latest shareholding pattern for the period ended September 2012 submitted by the company to the Bombay Stock Exchange. 

While the DCHL chairman Tikkavarapu Venkattram Reddy now holds 12.51% and his brother T. Vinayak Ravi Reddy 12.52% as against 24.61% each they held in June 2012, the third promoter PK Iyer holds slightly better stake at 13.16%. 

The other entities that now have sizeable holdings in the media firm include LIC Mutual Fund at 3.47%, Indiabulls 3.05%, LIC 2.45% and IDFC at 2.19%. 

Disclosing the company's audited financials for the 18 months period ended September 2012 after a gap of 15 months, the DCHL vice chairman PK Iyer said some of the company's lenders invoked pledge on shares offered by the promoters as collateral security to raise funds. 

"As a result, the promoters' shareholding as reflected in the depository has reduced from 78.83% to 38.4% as at 30 September 2012," said Iyer, adding that the "promoters have contested the invocation and appropriation of the pledge by the lenders." 

The publisher of English dailies Deccan Chronicle, Financial Chronicle and Asian Age and Telugu daily and weekly Andhra Bhoomi suffered a net loss of Rs 1,040 crore on a revenue of Rs 843 crore for the 18 months period ended September 2012. 

The beleaguered media house, which had extended its financial year by six months to September 2012 from March 2012, disclosed its financials after a gap of 15 months on Tuesday. 

The Hyderabad headquartered publisher saw its liabilities swelling to Rs 4,117 crore by September 2012 from Rs 928 crore in March 2011, while its networth eroded by more than 99% at Rs 10 crore from Rs 1,280 crore during this period. 

On Friday, the DCHL stock plunged 4.96% to touch new low of Rs 4.79 on Bombay Stock Exchange, the day the exchange's benchmark Sensex gained 179 points at 20,103 points.