Wednesday, June 16

Rana Kapoor: Rana Kapoor’s stake sale to have no impact on growth plans, says Yes Bank

MUMBAI: Yes Bank has clarified that the sale of stake by former CEO Rana Kapoor will have no impact on the bank’s plans. In a statement to the BSE, the bank said that its growth plans remain firmly on track.

“The board of directors of Yes Bank would like to state that the financial position of the bank is sound and stable, its operating performance continues to be robust and its growth plans stay firmly on track… . As has been publicly disclosed, one of the promoter entities of Yes Bank sold a part of its stake yesterday. This sale was effected purely to deleverage the debt of this entity,” the bank said.

Yes Bank shares rose 2.4% to Rs 55.44 on Friday.

On Thursday, Morgan Credits Pvt Ltd (MCPL), the holding company controlled by Yes Bank co-founder Rana Kapoor has reduced its stake in the bank by 2.3% to prepay non convertible debentures (NCDs) from Reliance Nippon Life Asset Management Co.

A total of 5.8 crore shares were sold at Rs 58.16 a piece to net Rs 337 crore which will be used to pre pay the debentures. The shares were sold via a block deal in the market.

“The proceeds will be solely utilized to prepay substantial portion of outstanding NCDs of MCPL subscribed by various schemes of Reliance Nippon. MCPL had in April 2018 placed rated, zero coupon NCDs amounting Rs 1160 crore with Reliance Nippon, the only borrowing of MCPL),” MCPL said in media statement.

MCPL had made total prepayments (including interest) to NCD holders of Rs 722 crore till date, ahead of the scheduled maturity date of April 2021. The share sale has also reduced the total promoter / promoter group ownership in Yes Bank to 15.7% from 18%.

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