Rana Kapoor To Sell Yes Bank Stake To Brookfield
The move to exit Yes Bank comes from the Kapoor family’s decision to protect other unlisted entities such as the Awfis Solutions, Art Housing Finance and Delhi Dabang Kabaddi Club.
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Rana Kapoor will soon seek Reserve Bank of India’s approval to sell his stake in Yes Bank to Canadian Asset Manager firm Brookfield, according to the people familiar with the development.
The move to exit Yes Bank comes from the Kapoor family’s decision to protect other unlisted entities such as the Awfis Solutions, Art Housing Finance and Delhi Dabang Kabaddi Club. A steep fall in Yes Bank’s shares has led to lenders seeking more cash cover against amounts borrowed by Rana Kapoor.
The Kapoor family-controlled 10.6 per cent in Yes Bank till the end of June 2019 but Kapoor has been selling to stop lenders from invoking the pledges; the stock price of Yes Bank has fallen by more than 78 per cent in the last six months. Subsequently, lenders strived for higher cover from Rana Kapoor and his family entities.
Rana Kapoor personally owns 3.92 per cent in Yes Bank while Yes Capital holds 2.97 per cent. On September, 20, Morgan Credits announced it had sold a 2.3 per cent stake in Yes Bank to repay lenders. Yes Capital is controlled by Kapoor’s three daughters and so is Morgan Credits.
Nearly 17 crore shares in Yes Bank belonging to entities in control of Kapoor and his family were pledged with Reliance Nippon Asset Management, of which nearly seven crore shares have been sold to repay 792 crores. The entire stake held by Rana Kapoor is currently pledged with RNAM.
The promoter group had attempted to monetise investments in some of these assets but with lenders impatient, the family had to resort to selling stake in Yes Bank.