Yes Bank Ltd shares bounced back as much as 6.7% in intraday trade on Friday, after sliding nearly 15% in the previous session as one of the promoter firms Morgan Credits Pvt. Ltd (MCPL), owned by Rana Kapoor’s family, sold 2.3% stake in the bank on 19 September to an unknown buyer.
The stake sale has reduced Rana Kapoor’s shareholding in Yes Bank to 7.4%. Earlier, Kapoor and his two family-owned companies, MCPL and Yes Capital, held 9.65% stake in the lender, with MCPL alone holding 2.76%.
“With the sole intention of reducing debt of the promoter holding company, MCPL, owned by my three daughters, it was decided to bring down our family ownership in Yes Bank to 7.4%,” Rana Kapoor was quoted as saying in a statement issued by MCPL.
The proceeds from the stake sale will be used to prepay a substantial portion of the outstanding non-convertible debentures (NCDs) of MCPL subscribed by various schemes of Reliance Nippon Life Asset Management Company (RNAM).
MCPL had placed rated, zero-coupon NCDs amounting to Rs 1,160 crore with RNAM in April 2018. The company had used these funds to incubate new-age startup businesses.
“We have concluded the stake sale solely to deleverage MCPL. Through prepayment of NCDs to RNAM, we have significantly reduced our borrowing in MCPL in an accelerated manner,” said MCPL’s director and Rana Kapoor’s daughter Radha K. Khanna in the statement.
Meanwhile, Yes Bank clarified 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.
At 10:30 am, Yes Bank shares were trading at Rs 55.15, up 2%, after hitting an intra-day high of Rs 57.75. The stock has lost nearly 82% of its value in the last one year.
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