YES Bank share price fell in early trade today after its promoter YES Capital sold 1.8% stake in the lender to prepay Rs 630 crore borrowed from Franklin Templeton Asset Management via non-convertible debentures. YES Bank stock slumped up to 5% to Rs 48.50 compared to the previous close of Rs 51.05 on BSE. At 1:42 pm, the stock recovered some lost ground to trade 1.67% lower at Rs 50.20 on BSE.
The large cap stock opened at a loss of 2.06% at Rs 50 today. YES Bank share price has lost 11% in last three sessions. YES Bank share price has lost 75.42% during the last one year and fallen 72.52% since the beginning of this year.
The private lender in a release said, "Yes Capital (India) Private Ltd ("YCPL"), part of the Promoter Group of YES Bank Ltd has today sold 1.8% shareholding in the bank. The proceeds will be utilized to prepay entire (100%) balance outstanding Non-Convertible Debentures (NCDs) of YCPL subscribed by various schemes of Franklin Templeton Asset Management (India) Pvt Ltd. YCPL had in September 2017 placed rated, zero coupon NCDs amounting to Rs 630 crore with Franklin Templeton Asset Management ."
This is the second time within a week that a promoter of YES Bank has sold shares to prepay NCDs.
According to reports on September 21, promoter group companies of YES Bank along with co-founder Rana Kapoor, sold a combined 2.75 per cent stake in the lender in open market. Yes Capital (India) Pvt Ltd, Morgan Credits Pvt Ltd and Rana Kapoor sold a combined 2.75 per cent in YES Bank through the open market process, according to a regulatory filing on September 21. The combined entities held 9.64 per cent holding in the bank, which then stood at 6.89 per cent. The release of shares took place between September 18 to September 20, 2019, the filing said.
Edited by Aseem Thapliyal