Yes Bank invokes pledged shares in Jhabua Power, Avantha Realty
Jhabua Power and Avantha Realty are the group firms of Gautam Thapar-owned Avantha Group.
Yes Bank has acquired 12,63,50,146 equity shares having face value of Rs10 per share, constituting 8.74 per cent of the paid-up share capital of Jhabua Power Limited by way of invocation of pledged shares, Yes Bank said in a regulatory filing.
The bank also acquired 10,08,598 equity shares having face value of Rs 100 per share, constituting 30 per cent of the paid-up share capital of Avantha Realty Ltd, it added.
The acquisition of shares in Jhabua Power is not a related party transaction and the promoter/promoter group/group companies have no interest in Jhabua Power, the lender said.
"Shares have been acquired pursuant to invocation of pledge of the shares subsequent to default/breach of terms of credit facilities sanctioned by Yes Bank to Oyster Buildwell Private Limited. Further, the said equity shares were cross collateralised for securing the exposure of Avantha Holdings for maximum amount of Rs 400 crore," Yes Bank said.
Jhabua Power Limited (JPL), is a subsidiary of Avantha Power & Infrastructure Limited. It is a power generation company based at Seoni district in Madhya Pradesh.
The power producing company was established in February 1995 and had turnover in FY17 and FY18 of Rs 288.27 crore and Rs 819.83 crore, respectively.
With regard to Avantha Realty, Yes Bank in a similarly worded explanation said the acquisition is not a related party transaction. "Shares have been acquired pursuant to invocation of pledge of the shares subsequent to default/breach of terms of credit facilities sanctioned by Yes Bank to Avantha Realty," the bank said.
Avantha Realty is land/property holding company for Avantha Group. It is primarily engaged in the business of purchase, sale, ownership, development, improvement, leasing, hire or otherwise acquiring and/or disposing off lands and immovable properties.
Incorporated in May 1981, it had turnover of Rs 6.98 crore in FY18 and Rs 6.55 crore in FY19.
Shares acquired on invocation of pledge subsequent to default/breach of terms of loans and accordingly proceeds from sale of shares will be utilised to reduce loans, Yes Bank said.
Notably, CBI in March this year had booked Yes Bank co-founder Rana Kapoor for allegedly obtaining Rs 307 crore bribe in the purchase of a Delhi's Lutyen's zone bungalow from Avantha Realty to go easy on around Rs 1,900 crore bank loans to the seller's group companies.
Earlier on May 30, Yes Bank had informed about acquiring over 24 per cent stake in Dish TV India following invocation of pledged shares due to debt default by the DTH service provider and other group firms. KPM BAL BAL