Rana Kapoor era ends at YES Bank as promoters sell remaining stake; stock falls 2%

YES Bank on Tuesday said that Rana Kapoor and promoter entities YES Capital and Morgan Credits have sold their remaining 0.8 per cent stake in private sector lender, which saw shares falling over 2 per cent on the bourses.

"The promoters sold 2.04 crore shares in the open market during November 13-14 and now hold a token of 900 shares in Yes Bank," the lender said in a filing to the Bombay Stock Exchange.  

This means that the promoter entities now hold merely 900 shares in the company.

Earlier, Rana Kapoor and his group entities had sold 2.16 per cent stake worth Rs 510 crore in YES Bank through an open market transaction. YES Capital (India), Morgan Credits Private and Rana Kapoor jointly offloaded 552 lakh shares, or 2.16 per cent, stake in the open market during September 26 to September 27. This was in addition to the stake sale of 1.8 per cent in the same month. Reliance Nippon Life Asset Management also invoked 3.92 per cent of its stake in YES Bank at September end.

Also Read: YES Bank shares fall nearly 8% in 3 days; here's why

As of September 30, 2019, the bank's founder and former chief executive officer Rana Kapoor owned 3.92 per cent in the bank while YES Capital held 0.8 per cent.

Weighed down by promoter's stake sale, YES Bank share price had slipped to historic lows of Rs 32 in October, from its record high of Rs 404 in August 2018 when the Reserve Bank of India asked Rana Kapoor to leave the bank. The sharp correction in stock price had eroded more than 90 per cent of investors' wealth.

Also Read: Why Rakesh Jhunjhunwala bought 1.3 crore shares of YES Bank

However, in the last one month, YES Bank share price rallied over 70 per cent after stock market investor Rakesh Jhunjunwala bought stake in the bank. On November 4, Jhunjhunwala had bought nearly 1.3 crore shares of YES Bank for around Rs 87 crore through open market transactions.

Earlier today, YES Bank share price gained as much as 2.04 per cent in opening trade to Rs 67.25 apiece on the BSE, the most since November 11, 2019, after the lender announced that it has acquired 20.61 per cent stake in Tulip Star Hotels over invocation of pledged shares. However, the stock soon slipped into negative terrain and fell 4.09 per cent in intraday trade to Rs 63.15 apiece against previous closing price of Rs 65.90.

Edited by Chitranjan Kumar