The Economic Times

Subhash Chandras Zee pledge saga: How promoter leverage turned growth ambition into a debt trap

Subhash Chandras Essel Group expansion was fuelled partly by borrowing against pledged Zee shares, with personal guarantees adding to the promoters obligations. When the IL&FS crisis tightened liquidity and Zees share price fell, lenders enforced pledges, eroding Chandras stake. The episode offers lessons on promoter leverage, collateral risk and investing.