Sebi clean chit offers Tayal cos including Tayal Energy, KSL and Industries a lifeline
Eight companies belonging to the Tayal family have got a lifeline to restructure their loans of over 2,000 crore after the market regulator reversed a two-year ban.
"In the beginning of the year, we had agreed to induct Tayal Energy, and KSL and Industries (for debt restructuring). We had to withdraw the plan at the last moment after we saw the Securities and Exchange Board of India ban," a banker familiar with the development said not wanting to be identified. "Now that the ban has been lifted, they (the promoters) have approached the CDR cell."
The story of the Tayal family's association with the Bank of Rajasthan had seen many twists and turns in the past few years. The market regulator had banned them from trading in securities markets for wrongful activities in March 2010. But this March, it revoked the ban saying "there is no allegation as to any price or volume manipulation by the promoters. Therefore... purely from a securities' market point of view, the severity of the offence could be considered not very grave".
During this period, the bank was sold to ICICI Bank. At current prices of ICICI, the value of shares held by the Tayals in the bank is over 1,500 crore. "It's been three months since we made an application," said PK Tayal, promoter of the erstwhile Bank of Rajasthan.
"We are running the textile companies for 55 years. However, the tough macroeconomic environment has had an impact on the textile business. We continue to be a standard asset. We have asked the banks to reduce the interest rate to 11%. We have not asked for any fresh limits."
Other group firms seeking loan recast include Jaybharat Textile and Real Estate, Eskay K'n'IT (India) Global Softech.