Shilip Cable technologies is promoted by the shilpi group which is 30 years old. This particular company was started in 2006 and seems to be the largest in the group. Unfortunately despite the size of the company it is not listed on Wikipedia. Visibility on the institutional side is low. Company has very aggresively grown 6x over 4 years and if the latest quarter is any consideration this company is larger than Finolex cables.
Top Cable manufacturing companiesin India:
PolyCab - FY2012 turnover was 4350 Crores
Sterlite Technologies - FY2014 was 2609 Crores
Finolex Cables - FY 2014 was 2440 Crores
Havells cables business - FY 2014 1930 Crores (only for cables)
And the latest quarter of Shilpi cables is 859 Crores giving it a run rate revenue of over 3200 crores probably making it the second largest cable company in the country.
The big issue here is that 87.57% of the promoters’ stock is pledged to the banks. Promoters own about 34.04% of the company and the rest is owned by the public. FIIs own about 13.71% of the company.
What happens if the promoter’s shares are called by the banks?
Why do promoters pledge shares? In order to provide security for the debt of the company?
Thanks.