Morgan Credits sells 2.3 pc stake in Yes Bank

Morgan Credits, a promoter group firm of Yes Bank, on Thursday said it has sold 2.3 per cent shareholding in the private sector lender.

"The proceeds will be solely utilized to prepay substantial portion of outstanding Non-Convertible Debentures (NCDs) of MCPL subscribed by various schemes of Reliance Nippon Life Asset Management Company (RNAM)," the company said in a regulatory filing.

Morgan Credits in April 2018 had placed rated, zero coupon NCDs amounting Rs 1,160 crore with RNAM (the only borrowing of MCPL), it said.

These funds were utilised by MCPL towards incubation of new-age start-up businesses. Pursuant to the above sale of shares, which was conducted solely to de-leverage MCPL, the promoter group has achieved highly positive outcomes, it added.

There were total pre-payments (including interest) to NCD holders of Rs 722 crore till date, well ahead of the scheduled maturity date of April 2021 as well as reduction in total promoter/promoter group ownership in Yes Bank to 15.7 per cent in compliance with the RBI norm of 15 per cent, as compared to 18 per cent earlier.

"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 startup ventures fully supported by professional management teams who have come on board as co-founders /partners," Radha K Khanna, Director, MCPL said.

Yes Bank promoter Rana Kapoor said: "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".

He further said Yes Bank is well poised in its growth journey to tackle challenges and seize opportunities in future as amply demonstrated over the past 15 years since its commencement in 2004.