Security over shares can provide a route to control an entity, but the entity’s own position determines the value of that control. Rajeev Khandelwal’s documented structured-finance and M&A background makes this a relevant distinction. A company may own assets while also owing money, holding contractual obligations or depending on approvals. The financing assessment needs to look through the shares to the business they represent.
Read the balance sheet underneath
A valuable operating asset can be offset by debt, unpaid liabilities or claims within the company. The lender should understand the full position rather than treat the shares as a direct equivalent of the asset’s gross value. This is particularly important in layered group structures, where cash and obligations sit at different entities and the company whose shares are pledged may not directly own every resource presented in the investment narrative.
Examine continuity of rights
Contracts and permissions can contain consequences when ownership changes. The practical ability to preserve the business after enforcement therefore matters. A share pledge may transfer formal control without guaranteeing that customers, suppliers or operating arrangements remain unchanged. The financing discussion should identify those dependencies and the process required to maintain continuity, using project-specific professional advice on the relevant documents and jurisdiction rather than broad assumptions about control.
Consider minority positions
A pledge over a partial holding can leave the lender dependent on shareholder agreements and the rights of other owners. The value of that position may differ from a controlling interest. Transfer restrictions, decision thresholds and exit arrangements all influence the commercial outcome. Understanding the actual bundle of rights helps avoid treating every percentage of equity as a proportionate share of an easily realisable whole-company valuation.
Security follows corporate structure
Credit Connect’s financing and M&A disciplines connect this topic to Rajeev’s wider professional landscape. The central lesson is that security should be assessed in the context of the entity and its relationships. A well-understood share pledge can form part of a financing structure, but its strength comes from the underlying business and accessible rights. Clear corporate mapping makes that protection easier to evaluate realistically before capital is committed.
