International Conveyors promoters pledge 91% of stake for ₹498 cr group loan
Encumbrance jumps from 72% to 91% of promoter holdings, covering individual promoters Surbhit and Yamini Dabriwala. The ₹498 cr loan equals nearly the entire market cap, secured by 63.93% of equity at a cover ratio of 0.66x.
— 2 earlier stories on International Conveyors Ltd. →What's new
- Promoter encumbrance surges from 72.28% to 91.03% of their 70.23% holding.
- Individual promoters Surbhit Dabriwala (12.67% stake) and Yamini Dabriwala (0.56%) are now encumbered.
- Loan of ₹498 cr from Kotak Mahindra Bank to Zenox Technology for Elpro International acquisition.
Why this matters
Nearly all promoter shares are now pledged against a loan that is 95% of the micro-cap company's market cap. The security cover ratio of 0.66x means the shares are already worth less than the debt, raising the risk of invocation and forced sale. This debt is for a group entity, not the listed company, making the stock a hostage to external repayment.
What we're watching
- Whether lenders act on the thin cover ratio if share prices fall further.
- Any stock movement on this escalation. The earlier 50.69% pledge was in June 2026.
- The promoter group's ability to service ₹498 cr debt tied to an unlisted acquisition.
The full read
International Conveyors' promoters just crossed a dangerous line. They have now encumbered 91.03% of their holdings, up from 72.28% earlier, to secure a ₹498 cr loan for Zenox Technology, a group entity buying Elpro International shares. The pledge now covers 63.93% of the company's equity, including individual promoters Surbhit and Yamini Dabriwala for the first time. The loan amount is roughly 95% of International Conveyors' own market capitalisation of ₹523 cr. And the security cover ratio is just 0.66x, meaning the shares backing the loan are already worth less than the debt. For a stock trading at 7.7x trailing earnings, the risk of invocation and forced share sale is real. This debt is detached from the listed company's operations. The earlier pledge of 50.69% in June was already high. This escalation makes the stock a passive hostage to a promoter-level acquisition.
Questions answered
- Why did International Conveyors promoters pledge more shares now?
- They needed additional collateral for a ₹498 cr term loan from Kotak Mahindra Bank to Zenox Technology Services, which is part-financing the acquisition of Elpro International shares.
- How much of the company's equity is now encumbered?
- 63.93% of the company's equity is encumbered, up from 50.69% disclosed in a previous filing in June 2026.
- What is the security cover ratio on the loan?
- The security cover ratio is 0.66x, meaning the value of the encumbered shares is only two-thirds of the loan amount, leaving lenders under-collateralised.
- Is this loan related to International Conveyors' operations?
- No. The loan is to Zenox Technology Services, a promoter-group entity, for buying Elpro International shares. It has nothing to do with the listed company's business.
- What happens if the loan defaults?
- Lenders could invoke the pledge and sell the shares in the open market, dumping about 64% of equity at once, which would devastate the stock price.
- How does this compare to the previous encumbrance in June?
- In June, promoters had pledged 50.69% of equity for a ₹420 cr debt. Now they have added another 13.24% of equity and included individual promoters for the first time, bringing total encumbrance to 91% of their holding.
International Conveyors Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on INTLCONV →- 15 Jul 2026 · 12:20 PM IST International Conveyors promoters pledge 91% of stake for ₹498 cr group loan
- 5d ago CARE lifts International Conveyors rating on 44% revenue growth
- 25d ago Promoter pledges 50.69% of International Conveyors for ₹420 cr debt