Rana Kapoor’s wife gifts property to nine-month old grandson
Rana Kapoor along with his wife attended Global Business Summit 2018 held in New Delhi (Source: ShutterStock)
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The wife of Yes Bank founder Rana Kapoor, Bindu Rana Kapoor, has gifted a property she owned at Jor Bagh in New Delhi to her nine-month-old grandson Aashiv Khanna, registration documents made available by Zapkey.com showed.
The gift deed was registered on July 31, 2021, according to the documents.
A stamp duty of Rs 36.90 lakh has been paid to execute the deed of gift in favour of Aashiv Khanna through Aashiv Khanna’s mother Radha Kapoor Khanna in her capacity as the natural guardian, the documents said.
The unit is located on a 369.40 sq m plot in Jor Bagh and includes a ground floor with 2BHK, a living area and one parking slot, among other facilities. The ground floor measures 161.5 sq m, the documents said.
Bindu Rana Kapoor had inherited a share in her father’s property in 2004, the documents showed.
When contacted, Radha Kapoor Khanna, the Kapoors’ daughter, did not comment.
The market value of the property is around Rs 40 crore, according to brokers active in the area. Another property in the vicinity spread across an area of 375 sq yards was sold for Rs 43.5 crore on July 24, 2021, as per documents accessed by Zapkey.com.
Transfer of properties to near and dear ones could be out of genuine love and affection, according to legal experts. Transfers also often happen to safeguard the possible attachment of properties in the future.
On July 21, a Prevention of Money Laundering Act (PMLA) court had rejected the bail plea of Yes Bank founder Rana Kapoor arrested by the Enforcement Directorate in connection with alleged multi-crore fraud at the bank.
Kapoor had sought bail on the merits of the case. His lawyers had submitted that the investigation in the case was completed, hence there was no reason to keep him in jail. Also, most of the evidence was documentary in nature and cannot be tampered with by the accused, they added. However, special judge P P Rajvaidya rejected Kapoor’s plea.
The banker, currently in judicial custody, was arrested in March under provisions of the Prevention of Money Laundering Act (PMLA). The Enforcement Directorate (ED) is primarily investigating Kapoor, his wife and three daughters over Rs 600 crore received by a firm allegedly controlled by them linked to the scam-hit Dewan Housing Finance Limited (DHFL).
Kapoor, his family members and others got benefits of Rs 4,300 crore through companies controlled by them as kickbacks for sanctioning huge loans, the ED has alleged.
He is also accused of receiving bribes for going easy on loans given to a few big corporate groups that had turned into non-performing assets (NPAs). The Central Bureau of Investigation (CBI) is also probing a related case.
In June 2021, The Securities Appellate Tribunal (SAT) has upheld regulator Sebi’s orders imposing a fine of Rs 1 crore on former Yes Bank CEO Rana Kapoor and a penalty of Rs 50 lakh each on two other entities. The entities — Yes Capital (India) and Morgan Credits — were penalised by Sebi in March 2021 for not making the requisite disclosures pertaining to the encumbrance of shares.
Market regulator Sebi, in September 2020, had imposed a fine of Rs 1 crore on Kapoor for not making disclosures regarding the Morgan Credits transaction. By not disclosing the transaction to Yes Bank’s board of directors, Kapoor has created an opaque layer between him and stakeholders, Sebi had said in its order passed in September 2020.
Don’t Ignore The Fact That This Insider Just Sold Some Shares In Yes Bank Limited (NSE:YESBANK)
We note that a Yes Bank Limited ( ) insider, Saif Khan, recently sold ₹4.2m worth of stock for ₹11.95 per share. That might not be a huge sum but it was 100% of their personal holding, so we find it a little discouraging.
The Last 12 Months Of Insider Transactions At Yes Bank
Over the last year, we can see that the biggest insider purchase was by insider Rakesh Arora for ₹10m worth of shares, at about ₹13.48 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being ₹11.90). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 1.12m shares for ₹15m. But insiders sold 2.87m shares worth ₹39m. In total, Yes Bank insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
NSEI:YESBANK Insider Trading Volume August 15th 2021
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Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Yes Bank insiders own about ₹1.9b worth of shares. That equates to 0.6% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Yes Bank Tell Us?
An insider hasn’t bought Yes Bank stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn’t bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. When we did our research, we found (1 shouldn’t be ignored!) that we believe deserve your full attention.
But note: Yes Bank may not be the best stock to buy. So take a peek at this free
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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Yes Bank Share Price: Sell YES Bank, target price Rs 10: Emkay Global
Did you Know? Stock score of Yes Bank Ltd moved up by 1 in a month on a 10-point scale. View Latest Stock Report »
Emkay Global has sell call onwith a target price of Rs 10. The current market price of YES Bank Ltd. is Rs 13.13. Time period given by analyst is one year when YES Bank Ltd. price can reach defined target.YES Bank Ltd., incorporated in the year 2003, is a banking company (having a market cap of Rs 33323.02 Crore).For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 5610.71 Crore, up 16.05 % from last quarter Total Income of Rs 4834.93 Crore and down -8.36 % from last year same quarter Total Income of Rs 6122.62 Crore. The bank reported net profit after tax of Rs 203.76 Crore in latest quarter.The brokerage expects the bank’s RoA trajectory to remain sub-par at 0.5-0.8% over FY23-24E vs. management expectation of 1-1.5%. It retains Sell with a TP of Rs10 (0.9x Sep’23E ABV) amid persistent concerns over its asset quality, sub-par return ratios, and unfavorable risk-reward ratio with higher valuations. Although the current management with regulatory/investor support has been able to avert bank failure, we believe that reorienting Yes Bank to a sustainable retail bank will require differentiated private banking management. Key risks to the call: Faster-than-anticipated business scale up and lower-than-expected NPA formation.Promoters held 0 per cent stake in the company as of June 30, 2021, while FIIs held 10.5 per cent, DIIs 47.1 per cent and public and others 42.5 per cent.