Yes Bank Sells Mutual Fund Business To Prashant Khemka-Backed Entity

Yes Bank Ltd. is exiting the mutual fund business by selling its asset management and trusteeship subsidiaries to an entity controlled by former Goldman Sachs Inc. fund manager, Prashant Khemka.

The private sector lender has executed a definitive agreement to sell 100% of Yes Asset Management Ltd. and Yes Trustee Ltd. to GPL Finance and Investments Ltd., according to a regulatory filing on Friday.

"White Oak Investment Management Pvt. Ltd. owns 99% of purchaser (GPL Finance). The ultimate beneficial holder of the purchaser is Prashant Khemka who owns 99.99% of White Oak Investment Management Pvt. Ltd.," Yes Bank said in the exchange filing. "Upon completion of the transaction, Yes AMC and Yes Trustee will cease to be subsidiaries of the bank and the bank will exit its mutual fund business.”

GPL Finance, a non-banking entity, is an investment vehicle used for 100% acquisition of Yes AMC and Yes Trustee, according to the statement.

The transaction, subject to requisite regulatory approvals, is expected to be completed in 8-12 months from execution of the definitive agreement. The consideration to be received from the sale is undisclosed as it'll be determined on closing of the deal.

“The bank, presently, does not have any promoters,” the statement added.

Yes AMC contributed Rs 33 lakh to Yes Bank’s revenue in fiscal 2019-20. The net worth contribution of the mutual fund arm was Rs 49.7 crore in the previous fiscal. Revenue and net worth contribution from Yes Trustee is nil, Yes Bank said.

On Friday, Yes Bank shares fell 1.21% to Rs 15.57 apiece on BSE while the benchmark Sensex gained 0.56% to end the day at 38,434.72 points.