The first round of Kapoor vs Kapur seems to have gone to Rana Kapoor, the CEO and MD of Yes Bank. An overwhelming majority of the shareholders of the private lender have approved the appointment of three new directors nominated by Kapoor.
The appointments were put to vote last Saturday at the bank’s annual general meeting (AGM) following dissent by Madhu Kapur, the wife of the late Ashok Kapur, one of the founders of the bank and holder of 12% of the bank’s shares.
Ashok Kapur was killed in the 26/11 terror attack. He was chairman of the bank at the time.
The battle, however, has moved beyond the boardroom to the courts. Bombay high court on Monday directed Yes Bank to advance its board meeting to June 27 to consider the appointment of Kapur’s daughter, Shagun Kapur Gogia, as director. The bank was was to hold the board meeting on July 24 to take up the issue.
Madhu Kapur had moved an appeal on Thursday opposing the appointment of three directors without her consent. The appointment had to be put to vote at the AGM.
“Overall, 57% of the total shareholder ownership votes were polled, and the general body of the shareholders passed all the three resolutions with an overwhelming majority of about 80% and elected all the three directors,” Yes Bank said in a statement.
The tree directors were sponsored by Rana Kapoor, who holds a 13.72% stake in the bank.
Madhu Kapur, who holds a 12% stake, wants a say in board appointments and also wants her daughter Shagun Kapur Gogia as her nominee on the board. A formal application, however, has never been made.
If you are a shareholder in the bank, don’t panic. Analysts believe that the family dispute will not have any impact on Yes Bank’s fundamentals.
“Though there could be near term sentiment impact on the stock, we don’t see fundamentals of the company getting affected in anyway and maintain our Outperform rating on the stock,” said Suresh Ganapathy, analyst, Macquarie Equities Research.
Meanwhile, the bank also said it has received shareholders’ approval to raise $500 million of incremental capital this year.
Not in race for Four Seasons: Kapoor
Yes Bank co-founder Rana Kapoor on Monday denied reports that he was in the global race among investment firms and top real-estate developers to acquire the Four Seasons Hotel and private residences project in Bangalore.
NRI entrepreneur Ravi Pillai and global investors such as Blackstone, GIC of Singapore and Tishman Speyer are in the race, sources said. Investment bank MAPE is co-ordinating the sale process of the project.
HTC, New Delhi