Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusiness

Yes Bank co-founder's family may sell stake in mortgage finance company

The family office has reached out to several private equity firms to gauge their interest

June 25, 2019 / 04:45 PM IST

Amid eroding growth prospects of non-banking finance companies (NBFCs) due to the rising wariness in the credit market, Yes Bank co-founder Rana Kapoor’s family is planning to sell a stake in their six-year-old mortgage finance company, reports Bloomberg.

The family office known as The Three Sisters: Institutional Office, run by the banker’s three daughters, reached out to several private equity firms to gauge their interest and is also working with Nomura Holdings over the potential sale, sources told the news agency.

ART Housing’s founders are planning to sell a minority stake to fund expansion, its CEO Arvind Hali told the wire agency. The company, he added, is in the process of raising equity capital from institutional investors.

Sources added that the family could consider selling a majority stake in the business, which has 35 branches. However, deliberation over a potential deal are at an early stage and there is no guarantee of a transaction.

Although the Infrastructure Leasing & Financial Services (IL&FS) fiasco triggered a liquidity crunch in the country’s credit market, it did benefit private equity firms like Blackstone and helped them acquire assets. Similarly, founders of various firms like the tycoon Anil Ambani and media giant Subhash Chandra are selling assets to tackle the liquidity crunch.

Even the parent company of Dewan Housing Finance Corporation (DHFL), Wadhawan Global Capital, sold its stake in Aadhar Hosing Finance to Blackstone earlier this year.

Before the central bank forced Kapoor out earlier this year, amid a controversy over bad-debt accounting, he built Yes Bank into India’s fourth-largest private lender over a span of 15 years. He is not involved in any capacity including as a shareholder, director or management of the family office run by his three daughters, the report stated.

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347