Private sector lender Yes Bank has acquired stake by invoking pledged shares of Jhabua Power and Avantha Realty after default of loans.

In a regulatory filing, the lender said it has invoked 12.63 crore equity shares of unlisted Jhabua Power amounting to 8.74 per cent of the post-issue paid-up share capital of the firm.

It further said that it has also invoked 10.08 lakh shares constituting 30 per cent of the post issue paid-up share capital, of an unlisted company — Avantha Realty Limited.

“Shares have been acquired pursuant to invocation of pledge of the shares subsequent to default or breach of terms of credit facilities sanctioned by Yes Bank to Oyster Buildwell Private Limited. Further, the said equity shares were cross collateralised for inter alia securing the exposure of Avantha Holdings Limited for maximum amount of ₹400 crore,” it said on the share invocation of Jhabua Power in the filing on June 27.

In the case of Avantha Realty, it said, “Shares have been acquired pursuant to invocation of pledge of the shares subsequent to default/breach of terms of credit facilities sanctioned by Yes Bank to Avantha Realty Limited.”

Jhabua Power — a subsidiary of Avantha Power and Infrastructure Limited — is a power generation company based at Seoni district in Madhya Pradesh

As part of its loan recovery efforts, the bank has been invoking pledged shares of many companies that had borrowed from it but have defaulted since then.

Significantly, the Central Bureau of Investigation had in March this year, booked Yes Bank co-founder Rana Kapoor for allegedly obtaining a bribe of ₹307 crore in the purchase of a Delhi’s Lutyen’s zone bungalow from Avantha Realty to go easy on around ₹1,900 crore bank loans to the seller’s group companies.

Published on June 28, 2020

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