RattanIndia Power has announced the release of over 209 crore shares from a Non Disposal Undertaking. These shares were held as security for a ₹550 crore working capital facility. This move frees up 88.65% of promoter holdings, signaling improved governance.
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RattanIndia Power Promoter Shares Released from Security
2,09,75,98,310 promoter shares released from Non Disposal Undertaking. Total promoter stake now 44.06% free from encumbrances. Reader Takeaway: Governance signal positive, promoter pledging risk removed. ## What just happened RattanIndia Power Ltd announced that 2,09,75,98,310 equity shares held by its promoters have been released from a Non Disposal Undertaking (NDU). These shares represented 88.65% of the total promoter shareholding. The NDU was placed on these shares to secure a ₹550 crore working capital facility provided by Kotak Mahindra Bank Limited. Vistra ITCL (India) Limited acted as the Security Trustee. ## Why this matters This release means the entire promoter shareholding, totaling 2,36,61,03,603 shares (44.06% of the company's equity), is now free from all encumbrances. This is seen as a positive development for corporate governance, removing potential risks associated with pledged or secured shares. ## The backstory The shares were previously held under an NDU as security for a working capital facility. This is a standard corporate finance practice, but the release signifies a cleanup of the promoter's financial obligations related to these specific shares. ## What changes now With the shares no longer under the NDU, promoters have greater flexibility regarding their holdings. More importantly, it reduces perceived risk for investors, as the majority of promoter equity is no longer tied to a specific debt facility. The corporate structure is now considered cleaner. ## Risks to watch While the release is positive, investors should continue to monitor the company's financial performance and debt levels. The underlying reasons for the initial NDU and the current status of the working capital facility are also points to track. ## Context metrics (time-bound) * **Shares released:** 2,09,75,98,310 equity shares. * **Percentage of promoter holding released:** 88.65%. * **Total promoter shareholding (post-release):** 2,36,61,03,603 equity shares. * **Total promoter stake (post-release):** 44.06%. * **Secured facility amount:** ₹550 crore.
