Yes Bank Co-Founder Rana Kapoor’s stake in the private lender has fallen below 1%. The bank said its shares tanked 23% on Tuesday after the trustee for a bond issue by Kapoor’s Morgan Credits sold 3.92% stake pledged by him. He stepped down as CEO earlier this year after the RBI refused to grant him another 3-year term.
According to a stock exchange notification by the bank, the steep fall in its stock price on Tuesday was owing to the forced sale of 10 crore equity shares, or 3.92 percent of the bank’s share capital, triggered by an invocation of pledge on the equity shares of a large stakeholder. The equity shares were pledged by Kapoor against non-convertible debentures issued by his company Morgan Credits Pvt Ltd, which were invoked by Reliance Nippon Life Asset Management.
The sale, which happened on Tuesday, sent the bank’s stock crashing 22.8 percent to Rs 32 per share, the lowest price in a decade. The lender has wiped off nearly 90 percent of its market value since Sept. 17, 2018, when the RBI denied Kapoor another term over divergence in bad-loan disclosures.
This is the third such sale of the bank’s promoter stake after pledged shares were invoked. On Sept. 19, Kapoor’s privately held Morgan Credits Pvt Ltd. sold 2.3 percent and then a week later, Yes Capital (India) Pvt Ltd. offloaded 1.82 percent.
Morgan Credits sold its stake to raise Rs 337.3 crore to prepay Reliance Nippon Life Asset Management Company Ltd. as it had issued non-convertible debentures worth Rs 1,160 crore in April 2018. Yes Capital prepaid Rs 241.52 crore to Franklin Templeton Asset Management (India) Pvt Ltd. against zero-coupon NCDs.