The move to exit Yes Bank stems from the Kapoor family’s decision to protect other unlisted entities such as the Delhi Dabang Kabaddi Club, Awfis Solutions and Art Housing Finance.
By Malini Bhupta
Rana Kapoor will soon seek the Reserve Bank of India’s approval to sell his stake in Yes Bank to Canadian asset manager Brookfield, persons familiar with the development have told FE.
The move to exit Yes Bank stems from the Kapoor family’s decision to protect other unlisted entities such as the Delhi Dabang Kabaddi Club, Awfis Solutions and Art Housing Finance. A sharp fall in Yes Bank’s shares has led to lenders seeking more cash cover against amounts borrowed by Rana Kapoor.
An email sent to Brookfield remained unanswered as did text messages to Rana Kapoor.
Ironically, a year ago Rana Kapoor had tweeted that his shares in Yes Bank would be bequeathed to his daughters “as diamonds are forever”.
The Kapoor family controlled 10.6% in Yes Bank till the end of June 2019 but Kapoor has been selling to prevent lenders from invoking the pledges; the stock price of Yes Bank has fallen by more than 78% in the last six months. Subsequently, lenders sought higher cover from Rana Kapoor and his family entities.
Rana Kapoor personally owns 3.92% in Yes Bank while Yes Capital holds 2.97%. On September, 20, Morgan Credits announced it had sold a 2.3% stake in Yes Bank to repay lenders. Yes Capital is controlled by Kapoor’s three daughters as is Morgan Credits Private Limited.
Nearly 17 crore shares in Yes Bank — belonging to entities controlled by Kapoor and his family — were pledged with Reliance Nippon Asset Management, of which nearly seven crore shares have been sold to repay `792 crore. The entire stake held by Rana Kapoor is currently pledged with RNAM.
Sources said the promoter entities wanted to protect the unlisted entities like the mortgage company Art Housing Finance, co-working space Awfis Solutions and the Kabbaddi league team called Dabang Delhi Kabaddi Club. Sources told FE the promoter group had attempted to monetise investments in some of these assets but with lenders impatient the family had to resort to selling stake in Yes Bank.