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Rana Kapoor sells entire Yes Bank stake; holds shares worth Rs 57,600

The bank's stock has fallen 65% to Rs 64.15 a share, this year to date

Anup Roy  |  Mumbai 

Rana Kapoor
File photo of Rana Kapoor

founder is virtually out of now, holding just 900 shares worth less than Rs 60,000.

Kapoor, with his brother in law Ashok Kapur and others, set up in 2003, holding 26 per cent in the bank. Now his stake is close to zero percent after holding company Yes Capital (India) Pvt Ltd sold 2.04 crore shares worth Rs 142.75 crore.

He had compared with diamonds in September last year.

"Diamonds are Forever: My Promoter shares of @YESBANK are invaluable to me,” Kapoor had tweeted. “I will eventually bequeath my @YESBANK promoter shares to my 3 daughters and subsequently to their children, with a request in my Will stating not to sell a single share.”

But his 3.92 per cent pledged shares were invoked in October, rendering Kapoor's direct holding in the bank zero.

Under Kapoor, total assets of the bank grew at a compound annual growth rate of 34% in the 10 years through March 2018, outpacing its peers among Indian banks, according to Bloomberg.

As Yes Bank reported huge divergence, more than Rs 10,000 crore in two years to fiscal 2017, the banking regulator, Reserve Bank of India refused to approve his extension in the bank at the start of this year.

Kapoor was also engaged in a protracted board room battle with Madhu Kapur, wife of late Ashol Kapur, over board positions. The Bombay High court ruled in favour of Madhu Kapur in giving her a say in appointment of board members. Madhu Kapur camp was against Rana's reappointment as the CEO too.

However, despite a temporary truce between the two camps, Yes Bank stock did not recover. Year to date, the stock has fallen 65 per cent to Rs 64.15 a share.

First Published: Wed, November 20 2019. 11:28 IST
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