| YES Bank AGM sees high drama, voting |
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Mumbai, 8 June The tussle between the promoters of YES Bank over board- level appointments spilled into the private lender's annual general meeting ( AGM) today, as crucial resolutions to induct three board members were opposed by several shareholders. As a result, the proposals to induct the board members were put to vote, the outcome of which will be known by Monday. The voting was closely monitored by an appointed scrutiniser and representatives of both the parties. The ballot outcome may not have any direct legal bearing as the Bombay High Court had said the appointments of the three directors would be subject to its directions. All resolutions were passed in the AGM unanimously or with a majority, barring resolutions relating to the appointment of Diwan Arun Nanda, Ravish Chopra and M R Srinivasan as directors. Madhu Ashok Kapur — the widow of YES Bank's late cofounder Ashok Kapur — and her two children had moved the high court requesting a stay on the AGM. Though the high court refused to order a stay, it said the directors' appointment will be subject to court's order. Kapur wanted her daughter, Shagun Kapur Gogia, to have a board seat. "The bank is doing well. But our rights should also be recognised," she said, refusing to elaborate as the matter was sub judice. Sources said promoter Rana Kapoor — co- founder, managing director and chief executive officer of YES Bank — had tried to resolve the issue before the court hearing and had sent a letter to Kapur on June 6, assuring that their rights will be protected but cited certain regulatory issues which could pose a challenge for the appointment of Gogia on the board. Sources said Kapoors wife Bindu also met her sister and Gogia to resolve the issue. Kapoor said in his letter that the proposal to induct Gogia would be taken up in the July 24 board meeting. Several shareholders said at the meeting Kapur was fair in asking for a representation on the board as her family owned almost equal number of shares as Kapoor in YES Bank. Turn to Page 4 > PROMOTERS' FEUD BOARDROOM BATTLE November 2003 |YESBankincorporated March 2004 |Promoters Rana Kapoor and AshokKapur, and key investors including Rabobank, infuse capital November 2008 |AshokKapur, the then chairman ofYESBank, dies in 26 / 11 Mumbai terror attacks April 2009 |Madhu Kapur expresses interestto be inducted into the bankboard |Proposal gets rejected citing RBIs " fitand proper" criteria June 5, 2013 |Kapur sends written requestto YESBank Chairman M R Srinivasan and to Kapoor to induct her daughter Shagun Kapur Gogia as her nominee on the banks board June 6, 2013 |Kapoor writes backto Kapur citing regulatory issues in wayofinducting Gogia on the board |Kapur files a petition in BombayHigh Courtto issue astayon the annual general meeting where there is a resolution to appointthree new directors ofthe bank June 7,2013 |BombayHCrefuses to grant stayon AGM. However, says the appointments ofthe three would be subjectto further directions ofthe court June 8, 2013 |YESBankholds ninth AGM; Kapur attends itwith Gogia and son GauravKapur |Seven outof10 resolutions passed bymajority shareholder |Resolutions to appoint Ravish Chopra, Diwan Arun Nanda and Srinivasan opposed |Ballotvoting on these issues held; result in 48 hours Madhu Kapur, widow of YES Bank's co- founder Ashok Kapur, after the bank's AGM in Mumbai on Saturday PHOTO: KAMLESH D PEDNEKAR COMPANIES 4> [1]Meet Shagun Kapur Gogia [1]Promoter feud could temporarily hit YES Bank's stock |
| From ICICI to YES: Meet Shagun Kapur Gogia |
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Kolkata, 8 June Shagun Kapur Gogia might not have convinced her uncle Rana Kapoor, managing director and chief executive of YES Bank, to appoint her as a board member of the bank, but it appears she has successfully carved out her own space in the financial world. Gogia is the daughter of Ashok Kapur, who co- founded YES Bank along with his brother- in- law Rana Kapoor. Ashok Kapur died in the 26/ 11 Mumbai terror attacks. In 2007, Gogia founded investment firm Tuscan Ventures. The firm focuses on private equity investments, offering strategic consultancy and incubating operating businesses, primarily in the logistics space in Asia. Tuscan had invested in one of India's largest freight forwarders, LCL Logistix, and in Singapore- based Rasmussen & Simonsen International, before promoting ColdStar Logistics. Gogia is a director in ColdStar, which offers temperaturecontrolled logistics to manufacturers, processors and wholesalers. Earlier, Gogia, a double major in economics and biology from Tufts University and an MBA from the Indian School of Business, Hyderabad, had spent three years in the corporate finance team at Rabo India Finance. At Rabo, she worked on mergers and acquisitions and private equity placements across various industries, including information technology, business process outsourcing and biotechnology. Rabobank had helped YES Bank's promoters set up the bank. The Dutch bank had also invested in a minority stake in the Indian private lender. Before founding Tuscan, Gogia had athree- year stint with private equity fund ICICI Ventures. She was part of the team that closed five deals, with total equity investment of about $ 100 million. However, despite her experience in finance, she found it difficult to secure membership in the YES Bank board. In April 2009, Madhu Kapur, widow of Ashok Kapur, had requested YES Bank to induct her as a board member, but the request was turned down. Earlier this month, she again requested her daughter be inducted into the board as her nominee member. She also filed a petition in the Bombay High Court, seeking YES Bank's annual shareholders' meet today be stayed. JITENDRA KUMAR GUPTA Mumbai, 8 June The dispute among the cofounders of YES Bank has already impacted Street sentiment. Analysts believe the development may have a short- term impact on the bank's share price, as some market participants might sell the stock, irrespective of the fundamentals of the bank. It is believed short sellers may capitalise on the weak sentiment, owing to the dispute between co- founders Rana Kapoor and Madhu Kapur. "We expect a four to five per cent fall in YES Bank share prices on Monday, but we believe beyond that, it will attract serious buyers. In the banking space, YES Bank is one of the best managed banks, with about 24 per cent RoE (return on equity), trading at 13 times its earnings," said A K Prabhakar, senior vice- president (equity research), Anand Rathi Financial Services. On Friday, the company stock closed marginally ( 0.99 per cent) lower at Rs 502.6. Most market participants believe in the short term, the development would impact sentiment. "I do not think it has implications on operations of the bank. Remember, the promoters are the minority shareholders," said the head of research of a foreign broking house. GChokkalingam, executive director and chief information officer at Centrum Wealth Management, said, " This development is completely irrelevant, from an operations point of view. We have a strong regulator in the country. The case of YES Bank is not comparable, but you know what happened in the case of Bank of Rajasthan." Shagun Kapur Gogia at the YES Bank AGM, in Mumbai on Saturday PHOTO: KAMLESH PEDNEKAR Promoter feud could hit YES Bank stock temporarily |
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