Yes Bank gains after Rana Kapoor's Yes Capital cuts stake

Yes Bank rose 1.86% to Rs 52 after Rana Kapoor sold another 1.8% stake in the bank.

Yes Capital (India), part of the promoter group of Yes Bank, sold 1.8% shareholding in Yes Bank. The proceeds will be utilized to prepay entire (100%) balance outstanding non-convertible debentures (NCDs) of YCPL subscribed by various schemes of Franklin Templeton Asset Management (India).

Yes Capital (India) had in September 2017 placed rated, zero coupon NCDs amounting to Rs 630 crore with Franklin Templeton Asset Management (India). These funds were utilized by Yes Capital (India) towards growth capital for new-age start-up ventures. Pursuant to the above sale of shares, which was conducted solely to de-leverage Yes Capital (India), the promoter group has achieved full and final prepayment to Franklin Templeton of entire outstanding NCDs well ahead of the scheduled maturity date of October 2020.

With this, promoter/promoter group ownership in Yes Bank has reduced to 13.4% in full compliance with RBI's regulatory levels of 15%.

Shares of Yes Bank fell 8.92% in the past two trading sessions to settle at Rs 51.05 yesterday, 26 September 2019, from its close of Rs 56.05 on 24 September 2019.

Morgan Credits (MCPL), part of the promoter group of Yes Bank, on 19 September 2019, sold 2.3% shareholding in the bank to prepay substantial portion of outstanding NCDs of MCPL subscribed by various schemes of Reliance Nippon Life Asset Management Company (RNAM).

Rana Kapoor, promoter, Yes Bank stated "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%."

Yes Bank announced during trading hours on 25 September 2019, that it has received strong interest from multiple foreign as well as domestic private equity & strategic investors for the proposed capital raise and it remains firmly on course to raising growth capital subject to the necessary approvals.

Yes Bank raised Rs 1,930 crore via qualified institutions placement (QIP), which was open between 8 and 14 August 2019. The bank allotted 23.1 crore equity shares of face value of Rs 2 each to eligible qualified institutional buyers at Rs 83.55 each.

Meanwhile, the S&P BSE Sensex was down 72 points or 0.18% to 38,918.

On the BSE, 104.92 lakh shares were traded in the Yes Bank counter so far compared with average daily volumes of 155.88 lakh shares in the past two weeks. The stock hit an intraday high of Rs 52.85. It hit an intraday low of Rs 48.50, which is also a 52-week low for the counter. The stock hit a 52-week high of Rs 285.90 on 3 April 2019.

Yes Bank's consolidated net profit fell 92.4% to Rs 95.56 crore on a 9.7% increase in total income to Rs 9,105.78 crore in Q1 June 2019 compared with Q1 June 2018.

Yes Bank is a private sector bank engaged in providing banking services, including corporate and institutional banking, financial markets, investment banking, corporate finance, branch banking, business and transaction banking, and wealth management.

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