Rana Kapoor pledges his 'diamonds' for daughters' venture; YES Bank recovers
Rana Kapoor was holding 4.31 per cent stake in YES Bank as of June 30, 2019.
Morgan Credits itself pledged 7.02 crore shares of YES Bank, accounting for 3.03 per cent of the total share capital.
The stock tanked 3.46 per cent in morning trade to Rs 88 level at around 9.25 am (IST), while the benchmark BSE Sensex traded 61 points, or 0.16 per cent, down at 37969. Later, the scrip recovered to trade 1.70 per cent higher at Rs 92.70 apiece on BSE at 10.20 am.
The two promoters pledged a 7.34 per cent holdings in favour of Milestone Trustship Services, the debenture trustee, for the benefit of the holders of debentures issued by MCPL.
While Mags Finvest and Madhu Kapur are also promoters of the bank, they are not ‘persons acting in concert’ with the pledgors, as defined in regulations 2(1)(q)(1) of the Sebi (SAST) Regulations and hence excluded from the disclosure.
As of June 30, 2019, Rana Kapoor held 4.31 per cent stake, or 10 crore shares, in YES Bank, while Madhu Kapoor held 7.56 per cent. Morgan Credits, YES Capital (India) and Mags Finvest – all promoter group entitities – held 3.03 per cent, 3.26 per cent and 1.61 per cent stake, respectively.
Kapoor, in a series of tweets in September last year, had said he would “eventually bequeath” his promoter shares to his three daughters and subsequently to their children.
In this leadership transition at @YESBANK, I continue to remain fully committed to the interests of the Bank and al… https://t.co/XmJGDuOauP— Rana Kapoor (@RanaKapoor_) 1538127850000
ET NOW quoted Rana Kapoor as saying that the pledge was made as a security for his daughters’ ventures. Kapoor said his daughters' firm had unsecured borrowings and he offered his own shares as security. “I have pledged own shares in the holding company for my daughters’ entrepreneurial efforts,” Kapoor said.