A watchman steps out of a Yes Bank branch in Mumbai  (Reuters)
A watchman steps out of a Yes Bank branch in Mumbai (Reuters)

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

MUMBAI : 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.

This story has been published from a wire agency feed without modifications to the text.

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