Comments
Morgan Credits, one of the promoter group companies of YES Bank, has sold 2.3 per cent of its stake in the private sector lender.
“The proceeds will be solely utilised to prepay substantial portion of outstanding non-convertible debentures (NCDs) of MCPL subscribed by various schemes of Reliance Nippon Life Asset Management Company,” Morgan Credits said in a release on Thursday.
MCPL, owned by the daughters of Rana Kapoor — founder of YES Bank — held 3.03 per cent stake in the bank as on June 30, 2019. Following the recent stake-sale, it now holds less than 1 per cent equity in the bank.
According to bulk deal data on the NSE, MCPL sold 5.8 crore shares at an average price of ₹58.16.
“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 per cent,” Kapoor said.
RBI norm-compliant
According to the statement, with the sale of shares, MCPL has prepaid (including interest) to NCD holders a total of ₹722 crore till date, which is well ahead of the scheduled maturity date of April 2021.
It has also helped reduce the total promoter and promoter group ownership in YES Bank to 15.7 per cent, which is in further compliance with RBI’s regulatory level of 15 per cent, compared to 18 per cent previously.
MCPL had in April 2018 placed rated, zero coupon NCDs amounting to ₹1,160 crore with RNAM for incubation of new-age start-up businesses.
Radha K Khanna, Director, MCPL, said, “We have concluded the stake-sale solely to de-leverage MCPL.
Through the prepayment of NCDs to RNAM, we have significantly reduced our borrowing in MCPL in an accelerated manner. Sponsored by women entrepreneurs, MCPL will continue to focus on its existing start-up ventures fully supported by professional management teams who have come on board as co-founders and partners.”
CARE had earlier this week downgraded the ratings of MCPL. It downgraded NCDs of ₹800 crore to BBB- from A citing the fall in the stock price of YES Bank.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.