Categories: Business

Yes Bank to come out of mutual fund business, agreement to sell to associate units

Photo: BLOOMBERGQUINT

Yes Bank to exit mutual fund business; inks agreement for sale of subsidiaries

new Delhi. Private sector Yes Bank on Friday announced its exit from the mutual fund business. The bank said on Friday that it would sell its stake in asset management and trustee subsidiary units. In a communication sent to the stock exchanges, the bank said that it has confirmed agreement to sell its 100 percent stake in Yes Bank Asset Management (India) Limited (YesAMC) and Yes Trustee Limited (YTL) to GPL Finance & Investments Limited on August 21, 2020. Have done Both are wholly owned subsidiaries of Yes Bank.

Yes Bank said that White Oak Investment Private Limited holds 99 percent stake in the acquiring company. But ultimately the beneficiary of the buyer company is Prashant Khemka, who holds 99.99 percent stake in White Oak Investment Management Private Limited.

The bank said that the deal is yet to get the necessary approvals from regulatory authorities. YesAMC is an asset management company of Yes Mutual Fund. YTL is a trustee of Yes Mutual Fund. Yes Bank said that after the completion of the deal, the subsidiaries of YesAMC and YTL Bank will cease to be and will exit the mutual fund business. The bank said that it would complete the sale deal of its subsidiaries within 8 to 12 months from the execution of the pact.

Currently, the bank has no promoter. YESAMC's revenue share stood at Rs 33 lakh in the financial year 2019-20, which is negligible in percentage. The net asset share of AMC during the year is Rs 49.7 crore, which is negligible in percentage. YTL's revenue and net asset share remained nil during the year. GPL Finance & Investment Limited is an NBFC that will acquire 100 percent of YesAMC and YTL. On the BSE, Yes Bank shares closed down 1.21 percent at Rs 15.57 per share on Friday.

This post was published on August 22, 2020 4:57 am

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