Prince Pipes Promoters repays Rs 200 cr loan in escrow, no pledge or encumbrance on shares

Mumbai, December 31, 2019: Express Infra Projects LLP had issued bonds aggregating up to Rs 200 crore, of which Rs 191.5 crore was outstanding as on October 31, 2019.

For securing these bonds, the promoters of Prince Pipes and Fittings Limited (“Company”), Jayant Shamji Chheda, Tarla Jayant Chheda, Parag Jayant Chheda, Vipul Jayant Chheda and Heena Parag Chheda, and one of its promoter group entities, Jayant Shamji Chheda HUF, had on March 30, 2019 pledged certain equity shares in their capacity as first holders or second holders of such Equity Shares, aggregating 35 per cent of the Equity Share capital of the company on a fully diluted basis, with IDBI Trusteeship Services Limited, acting as a trustee on behalf of the bondholders. Further Parag Jayant Chheda and Vipul Jayant Chheda had also provided a non disposal undertaking with respect to an additional 16 per cent of the Equity Share capital of the Company (on a fully diluted basis)

“The outstanding amount in relation to the Bonds have been paid in full, in the escrow account, out of the proceeds from the offer for sale received by the company in relation to the offer in accordance with the cash escrow and sponsor bank agreement dated December 10, 2019, entered into between amongst the Company, Jayant Shamji Chheda, Tarla Jayant Chheda, Parag Jayant Chheda, Vipul Jayant Chheda, JM Financial Limited, Edelweiss Financial Services Limited, HDFC Bank Limited and Link Intime India Private Limited,” the promoters informed the Company as per the Company's regulatory filing to the Bombay Stock Exchange (BSE) and National Stock Exchange of India Limited (together with BSE, the "Stock Exchanges").

Pledge as well as non disposal undertaking was released prior to RHP filing by the Company, subject to the condition that it is repaid within 2 business days of (i) the credit of proceeds of the IPO in the public offer account opened in relation to the Offer; or (ii) the receipt of the final listing and trading approvals for the Equity Shares from the Stock Exchanges, whichever is later.