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  Business   In Other News  20 Sep 2019  Rana family sells 2.3 per cent Yes stake

Rana family sells 2.3 per cent Yes stake

THE ASIAN AGE. | ASHWIN J PUNNEN
Published : Sep 20, 2019, 2:47 am IST
Updated : Sep 20, 2019, 2:47 am IST

MCPL had in April 2018 placed rated, zero-coupon NCDs amounting Rs 1,160 crore with RNAM.

Morgan Credits (MCPL), part of the promoter group of Yes Bank, on Thursday said it has sold 2.3 per cent stake in Yes Bank. MCPL held about 3.03 percent stake in the bank.
 Morgan Credits (MCPL), part of the promoter group of Yes Bank, on Thursday said it has sold 2.3 per cent stake in Yes Bank. MCPL held about 3.03 percent stake in the bank.

Mumbai: Morgan Credits (MCPL), part of the promoter group of Yes Bank, on Thursday said it has sold 2.3 per cent stake in Yes Bank. MCPL held about 3.03 percent stake in the bank.

MCPL said it will use the proceeds of the stake sale solely to prepay a substantial portion of its outstanding non-convertible debentures (NCDs) subscribed by various schemes of Reliance Nippon Life Asset Management Company (RNAM).

Yes Bank shares was down 15 per cent on BSE on Thursday.

“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,” Rana Kapoor said in the release.

MCPL had in April 2018 placed rated, zero-coupon NCDs amounting Rs 1,160 crore with RNAM.  These funds were utilised for incubation of new-age start-up businesses.

In the media release, the company noted that the said stake sale that was done to de-leverage MCPL has led to the following:- total prepayments (including  interest) to NCD holders of Rs 722 crore till date are well ahead of the scheduled maturity date of April 2021 and -total promoter/ promoter group ownership in YBL has been reduced to 15.7 percent (in further compliance with RBI’s regulatory level of 15.0 percent), as compared to 18.0 percent previously.

Care Ratings downgraded Morgan Credits bonds to BBB- from A- on Tuesday even though fund houses had forced Kapoor to secure the loan through pledging shares last week. Of course, this meant that the collateral value can be lowered.

Tags: yes bank, rnam