Indian Bank buys Marg Limited’s 52.46 per cent stake in Karaikal Port

Indian Bank has taken over the 52.46 per cent equity stake owned by Marg Limited in Karaikal Port Private Limited (KPPL). KPPL is a special purpose vehicle (SPV) incorporated for the implementation and operation of Karaikal port. The majority stake was taken over by the bank due to a default in loan repayment by Marg Limited. However, the bank cannot sell the shares to a third party due to a court order.  This transfer reduces the stake of Marg Limited in KPPL to 15.12 per cent from the earlier 67.58 per cent. A consortium led by Indian Bank, comprising 12 state-owned banks, extended funds to Marg Limited for the development of the port. The outstanding debt is about Rs 18 billion including the principal and interest.

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