Morgan Credits Pvt. Ltd. (MCPL) and Yes Capital, part of the promoter group of Yes Bank, expressed their disappointment over Reliance Nippon Asset Management Company (RNAM) selling pledged shares of the lender at a ‘dismal price’ on Tuesday.
On Tuesday, Milestone Trusteeship Services sold 10 crore shares of Yes Bank at ₹35.29 apiece. On July 22, Rana Kapoor, the former MD and CEO of Yes Bank and also the co-founder, had pledged 10 crore shares with Milestone Trusteeship Services.
“To our extreme disappointment, we were informed late yesterday, [October 1], that Reliance Nippon Life Asset Management Company vide the appointed trustee Milestone had invoked and sold our balance pledged promoters shares for MCPL in the open market. These shares were pledged by our father, Mr. Rana Kapoor, to support the borrowing of MCPL, a company owned by his three daughters for investing in start-up ventures in our capacity as women entrepreneurs,” a joint statement from MCPL and Yes Capital said.
“We are highly dejected that our family shareholdings in Yes Bank were sold at such dismal price levels,” it added.
The statement further said the total prepayments to RNAM by MCPL are about ₹1,145 crore, well before the due date of April 2021.
Yes Bank shares tanked almost 23% on Tuesday.
In a separate statement, Yes Bank said Tuesday’s fall in share price was primarily due to ‘forced sale’ of 10 crore shares — which was 3.92% of the bank’s total equity share capital — by an invocation of pledge of equity shares of a large shareholder.
