Points to Remember:
- Yes Bank Co-founder and former CEO Rana Kapoor is reportedly in talks with Paytm Founder and CEO Vijay Shekhar Sharma to sell his and his family’s shares to the fintech startup for up to Rs. 2,000 crore.
- Kapoor and his family members reportedly hold 9.64% of Yes Bank shares.
- The stake is reportedly worth Rs. 1,550 crore as per current valuations.
- Last month, Yes Bank had raised Rs 1,930 crore through a qualified institutional placement (QIP).
What Is a Qualified Institutional Placement (QIP)?
- A qualified institutional placement (QIP) is a way for listed companies to raise capital, without having to submit legal paperwork to market regulators.
- The Securities and Exchange Board of India (SEBI) created the rule to avoid the dependence of companies on foreign capital resources.
Important Possible questions based on above News:
- Who is planning to buy Yes Bank former CEO’s shares worth Rs. 2000 crore? PayTm
- ____ is a way for listed companies to raise capital, without having to submit legal paperwork to market regulators. QIP
- What does the term I stands for in the abbreviation QIP? Institutional