New Delhi, May 31 (IANS): In a major development for Yes Bank, which has of late been through tumultuous times, co-founder Ashok Kapurs wife, Madhu Kapur and her family Shagun Kapur Gogia and Gaurav Ashok Kapur along with a Madhu Kapur Group entity Mags Finvest Pvt Ltd will no more be classified as the promoters of the bank.
In a regulatory filing, Yes Bank said that the Madhu Kapur Group has consented to reclassify their shareholding in the bank as ‘non-promoters' or public shareholders
Madhu Kapur and family had been trying to gain a bigger share in the functioning of the Yes Bank since the demise of Ashok Kapur in 2008, and eventually was able to get powers such as board control and selection of directors last year.
As of March 31, Madhu Kapur holds over 14 crore or 1.12 per cent shares and Mags Finvest holds at over 3.72 crore or 0.30 per cent shares in the bank.
"This is to inform that the Bank has received a letter dated May 28, 2020 (Received on May 29, 2020) from (i) Madhu Ashok Kapur; (ii) Shagun Kapur Gogia; (iii) Gaurav Ashok Kapur; and (iv) Mags Finvest Private Limited (collectively referred to as "Madhu Kapur Group") consenting to reclassify their shareholding in the Bank as 'non-promoter shareholders' (i.e. public shareholders)," the bank said in a regulatory filing on Saturday.
The consent brings to an end a dramatic battle stretching for over several years between Madhu Kapur and family and Rana Kapoor, the co-promoter over control over the bank's board.
The decision by Madhu Kapur and the family comes around three months after the Reserve Bank of India superseded the bank's board and a State Bank of India-led equity consortium bailed out the lender with capital infusion of Rs 10,000 crore.
Post the investment, SBI has the highest shareholding of 49 per cent. Former Chief Financial Officer (CFO) of SBI, Prashant Kumar is the current CEO of Yes Bank.
Rana Kapoor, the other promoter and former CEO of Yes Bank is currently under the scanner of the Enforcement Directorate. Although classified as a promoter, Kapoor does not hold any share in the bank.