Yes Bank co-promoter and its former CEO Rana Kapoor is looking to monetise his family-owned stakes in various unlisted businesses to repay dues to creditors, sources aware of the development told CNBC-TV18.
Yes Capital and Morgan Credits, holding companies controlled by Rana Kapoor and his family, are looking to pay part of the debt from Reliance Mutual Fund and Franklin Templeton via this monetisation drive, the sources added.
Yes Capital owns 3.26 percent stake and Morgan Credits 3.03 percent as part of the promoter group shares in Yes Bank as of June 2019, data from stock exchange filings showed.
Among the businesses where Rana Kapoor and family are looking to monetise stake are ART Business and Consumer Finance Pvt Ltd, Awfis Co-working, as well as stakes held in the family’s logistics and sports companies, the sources, who did not want to be named, said.
Rana Kapoor had told CNBC-TV18 on August 22 that "Yes Capital's NCDs (non-convertible debentures) from Franklin Templeton have been prepaid by 67 percent, even though bullet repayment maturity is only in October 2020”, and “Morgan Credits NCDs from Reliance Nippon Mutual Fund have been prepaid by over 31 percent, even though bullet repayment maturity is only in April 2021”.
Radha Kapoor Khanna, promoter of Morgan Credits, and Rana Kapoor’s eldest daughter, in a statement to CNBC-TV18, said, “RNAM prepaid by Rs 360 crore most recently and another Rs 300 crore early next week, even though maturity is April 2021”.
Reliance Nippon Mutual Fund’s response to the story is awaited.
Morgan Credits (MCPL) had issued two NCDs of Rs 950 crore and Rs 210 crore in April and July 2018 respectively to raise growth capital for various businesses incubated by MPCL. Of this, MCPL prepaid/repurchased Rs 210 crore NCD tranche entirely on November 27, 2018, another Rs 150 crores from the Rs 950 crore NCD tranche between March and June 2019. The outstanding NCDs worth Rs 800 crore remain.Care Ratings on Tuesday downgraded ratings of Morgan Credits’ Non-Convertible Debentures (NCD) worth Rs 800 crores to BBB- from A-, taking into account the fall in the stock price of the underlying shares of Yes Bank Limited (YBL) which are held by MCPL or promoters and/or their relatives. Care Ratings said the revised rating considers the moderation in cover due to fall in the stock price of the underlying shares of Yes Bank.