Yes Capital (India) Pvt. Ltd. sold a 1.8% stake in Yes Bank Ltd. to prepay all the outstanding nonconvertible debentures of Yes Capital subscribed by mutual funds.
Yes Capital, part of the promoter group of Yes Bank, had in September 2017 placed nonconvertible debentures totaling 6.3 billion rupees to Franklin Templeton Asset Management (India) Pvt. Ltd., according to a Sept. 26 disclosure.
Following the stake sale, the promoter group ownership in Yes Bank fell to 13.4%, still in full compliance with the central bank's regulatory level of 15%.
The move follows a report that the bank's founder, Rana Kapoor, plans to sell his stake to Canada's Brookfield Asset Management Inc. as the Kapoor family looks to protect other unlisted entities such as the Delhi Dabang Kabaddi Club, Awfis Solutions and Art Housing Finance. The Kapoor family held a 10.6% stake in the bank as of June 30, but has been paring its stake in the lender to prevent lenders from invoking pledges.
As of Sept. 26, US$1 was equivalent to 70.97 Indian rupees.
