Yes Bank acquires eight crore pledged shares of CG Power

  • The acquired shares represent 12.79% ownership in the company and will be valued at 292.56 crore as per the Tuesday's close
  • CG Power had a turnover of 6,287 crore in fiscal year 2017-18

PTI
Updated7 May 2019, 06:16 PM IST
A watchman steps out of a Yes Bank branch in Mumbai
A watchman steps out of a Yes Bank branch in Mumbai (Reuters)

Private sector lender Yes Bank on Tuesday said it has acquired eight crore shares in electric equipment maker CG Power and Industrial Solutions which were pledged to it by a borrower.

The acquired shares represent 12.79% ownership in the company and will be valued at 292.56 crore as per the Tuesday's close.

The shares have been acquired on "invocation of pledge subsequent to default/breach of terms of loan to Oyster Buildwell Private Limited", the bank said in a regulatory filing.

Proceeds from the sale of shares will be utilised to reduce the loans secured by such shares, it added.

CG Power had a turnover of 6,287 crore in fiscal year 2017-18.

A report by domestic brokerage Kotak Institutional Equities had Tuesday said that 100% of the promoter shareholding in CG Power was pledged as of March 31.

It can be noted that the private sector lender has come under pressure from investors after it declared a maiden loss of 1,506 crore for the March quarter under a new leadership.

Yes Bank new chief executive Ravneet Gill had disclosed that over 10,000 crore of loans is to low-rated borrowers and it expects half of it to slip into NPAs, due to which it made a proactive contingent provision of 2,100 crore.

Apart from a "double downgrade" by a foreign brokerage, the bank's long-term rating was also downgraded by domestic rating agency Icra over the weekend.

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First Published:7 May 2019, 06:16 PM IST
Business NewsMarketsStock MarketsYes Bank acquires eight crore pledged shares of CG Power

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