News, Scrip Scan

Yes Bank co-founder Rana Kapoor’s family plans to sell mortgage unit

Scrip Sanctuaries for protection from the wildlife in this jungle of Indian Equities

Yes Bank co-founder Rana Kapoor’s family plans to sell mortgage unit

Family office run by Rana Kapoor’s three daughters is working with Nomura Holdings Inc. on a potential deal.

Banker Rana Kapoor’s family is planning to sell a stake in their six-year-old mortgage finance company, people with knowledge of the matter said, as rising wariness in the credit market erodes growth prospects of shadow finance firms.

The family office run by the three daughters of the Yes Bank Ltd. co-founder is working with Nomura Holdings Inc. on the potential deal, according to the people, who asked not to be identified as the information isn’t public. It has reached out to several private equity firms to gauge their interest, the people said.

While default at Infrastructure Leasing & Financial Services Ltd. triggered a liquidity crunch in India’s credit market, it has helped private equity firms such as Blackstone LP acquire assets. Many founders–from tycoon Anil Ambani to media mogul Subhash Chandra–are selling assets to tide over a liquidity crunch. Shadow banks are facing most of the burnt as the cracks from the credit squeeze spread far and wide forcing investors to shun their debt and raising rollover risks for outstanding borrowings.

The Kapoor family office could consider selling a majority stake in the business, the people said. Deliberations regarding a potential sale are at an early stage, and there’s no guarantee they will lead to a transaction, the people said. An official at the fund–known as The Three Sisters: Institutional Office–referred queries to ART Housing.

ART Housing’s founders are planning to sell a minority stake to fund expansion, Arvind Hali, chief executive officer of the lender said in an email. The mortgage financier, with 35 branches, is in the process of raising equity capital from institutional investors, he said. A representative for Nomura didn’t immediately respond to an email seeking comment.

Wadhawan Global Capital, parent of an Indian mortgage lender Dewan Housing Finance Corp., sold its stake in Aadhar Housing Finance Ltd. to Blackstone earlier this year. Meanwhile a family office that manages money for India’s wealthy Jhunjhunwala family is looking to invest in finance companies which have been pummeled by the crisis.

Kapoor built Yes Bank into India’s fourth-largest private lender over 15 years until the central bank forced him out earlier this year amid a controversy over bad-debt accounting. The banker is not involved in any capacity including as a shareholder, director or management of the family office run by his three daughters, an email statement from the company in November showed.

https://www.business-standard.com/article/companies/yes-bank-co-founder-rana-kapoor-s-family-plans-to-sell-mortgage-unit-119062400643_1.html

Excerpts from Gaurav’s Blog

  Rest in Peace now Gerela Saab  ! Mr S T Gerela ex GM of BSE passed away peacefully this morning We had not met in years but he always remained at the top of my mind when it came to testimonials for this is what he had said to me over a decade ago,when […] [...]

Vedanta de-listing offer price Rs 87.50~Come on Mr Anil Agarwal ! Promoter Group of  Vedanta Ltd has proposed a voluntary de-listing at an indicative offer price of Rs 87.50~are the over 7.3 lakh minority shareholders from Alibag !? …apologies to the people of Alibag Some would term this as De-listing Duplicity ~ but I would […] [...]

This is a Riskless Reliance Industries Rights Investment Strategy for those over 2.3 Million Shareholders already holding RIL shares. It is not a recommendation to buy RIL cum rights  It’s a no brainer yet I’m just penning a brief note because some have told me they hold Reliance but are skipping the Rights ! Don’t […] [...]

 Wealth is negotiable, Health is not Your Personal Well Being is more important that the Stock Market Well Being ~ Always & more so in this unfathomable ongoing Covid-19 Reality Above’s a three minute reach out by me last night to all connected with me to reinforce this .It’s also posted on Facebook , […] [...]

Yes Bank ~ Has the RBI & MOF lost it !? SEBI really is a bystander here Controversial Lock In Clause 3 Sub Clause 8 (a) in the Scheme of Reconstruction  No wonder the Finance Minister Mrs Nirmala Sitharaman, while highlighting only selected points, even when asked for details of the Scheme,did not want to […] [...]