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Last Updated : Sep 20, 2019 09:48 AM IST | Source: Moneycontrol.com

Yes Bank gains 3% as promoter offload stakes

Morgan Credits (MCPL), part of the promoter group of the company, has sold 2.3 percent shareholding in the bank on September 19.

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Shares of Yes Bank rose 3.7 percent in the early trade after hitting a 52-week low of Rs 52.65 after Morgan Credits (MCPL), part of the promoter group of the company, sold 2.3 percent shareholding in the bank on September 19.

The proceeds will be used to prepay a substantial portion of the outstanding non-convertible debentures (NCDs) of MCPL subscribed by various schemes of Reliance Nippon Life Asset Management Company (RNAM).

MCPL had in April 2018 placed rated, zero-coupon NCDs amounting to Rs 1,160 crore with RNAM. MCPL used the funds to incubate new-age startup businesses.

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With this, the promoter group has achieved total prepayments (including interest) to NCD holders of Rs 722 crore till date, well ahead of the scheduled maturity date of April 2021.

There is also a reduction in total promoter/promoter group ownership in the bank to 15.7 percent (in further compliance with RBI’s regulatory level of 15 percent), as compared to the previous 18 percent.

Yes Bank clarified that the financial position of the bank is sound and stable, its operating performance continues to be robust and its growth plans stay firmly on track.

At 09:22 am Yes Bank was quoting at Rs 55.90, up by Rs 1.75, or 3.23 percent on the BSE.

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First Published on Sep 20, 2019 09:41 am
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