The Bombay High Court on Thursday suggested the two promoters of Yes Bank — Rana Kapoor and Madhu Kapur — should explore the possibility of bringing down their holdings in the bank to just below 10 %, reports Express News Service in Mumbai. This, said justice Gautam Patel, will end the right of the Indian partners to nominate a director on the bank board under the articles of association of the bank and help settle the two-year-long dispute amicably. Currently, Madhu Kapur and family hold a 10.29% stake in Yes Bank while Rana Kapoor, directly and through other family-owned ventures, holds 11.77%. Both parties declined to comment on the case as the final order is not out yet. Under the articles of association of the bank, both Indian partners who hold more than a 10% stake have a right to nominate directors on the board.
“I have a suggestion for a way out. Any disruption in the working of Yes Bank will affect both of you. If both groups reduce their shareholding just below 10% then the matter will be solved,” said Patel.
Patel, however, clarified that his suggestion is not binding on the parties and has asked them to think about it and inform the court of their decision by May 12. The court has reserved its final order till then. Both parties also have a right to reject high court’s suggestion.
Madhu Kapur, widow of Ashok Kapur who died in the November 26, 2008, Mumbai terrorist attack, and her family took Rana Kapoor and Yes Bank to court in June 2013. Kapur is demanding the right to nominate a director to the bank’s board under the articles of association of the bank.
Based on Thursday’s closing price, Yes Bank’s market capitalisation is Rs 33,387.50 crore, valuing the Kapur group’s holding at Rs3,435.60 crore and the Kapoor group’s holding at Rs 3,929.70 crore.
Shares of Yes Bank closed at Rs 798.75 on the BSE, down 2.73% from its previous close, while the Sensex fell 0.44%.
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