The company will use the stake sale proceeds solely to prepay a substantial portion of its outstanding NCDs.
Morgan Credits (MCPL) on September 19 said it has sold 2.3 percent stake in Yes Bank.
MCPL held about 3.03 percent stake in the bank.
MCPL, part of the promoter group of Yes Bank, 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).
“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 percent,” 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.The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .