Published on : 20 Nov 2025, 10:07 am 4 min read

The concept of pledge has always been a part and parcel of Indian society. Pledging of shares is also commonly used as a method of raising money by using shares held in a company as collateral for the loan.

However, recent attention drawn to pledging of shares by promoters of companies raises a question whether the general public knows about the implications of such a share pledge.

The Shapoorji Pallonji (SP) Group has an 18.4% stake in Tata Sons, which is given as collateral (pledged) for a reported borrowing of around $1.2 billion . The construction and real estate business of the SP Group had come under financial distress after COVID-19, necessitating the huge borrowing. Though the SP group has argued that the public listi

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