Kotak Bank takes legal action against Ashneer Grover of BharatPe

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Cosmetics e-commerce company Nykaa made a splash in public markets last year, with a premium of 79% over its issue price on the National Stock Exchange. However, Nykaa’s IPO appears to have served as the basis for a standoff between fintech unicorn co-founder BharatPe and CEO Ashneer Grover and Uday Kotak, CEO and CEO of Kotak Mahindra Bank.

The two have clashed ever since Grover and his wife sent Kotak a legal opinion (and addressing several others) for failing to provide funding for the IPO and the stock award.

Let us first give some information on the question. Nykaa’s IPO lasted from October 28 to November 1. In September, Grover told Grover an executive at Kotak Wealth Management that he wanted to apply for 500 crore of Nykaa shares and requested funding for Nykaa’s IPO.

In October, the same executive obtained Grover’s signatures on certain documents to subscribe to Nykaa’s IPO. In the same month, Kotak said he could not provide IPO funding and cited reasons such as erratic FII movements and very high lending rates.

A few days later, Grover sent the notice, addressing not only Kotak but also Oisharya Das, CEO of Kotak Wealth Management, Shanti Ekambaram, Group Chairman – Personal Banking and KVS Manian, Director and Chairman of banking services to companies, institutions and bank investments. . He alleged that failure to provide funding for the IPO resulted in losses and “completely crippled” his clients’ ability to participate in Nykaa’s IPO.

Grover alleged that he also deprived their clients of “a business / investment opportunity that they had informed Kotak about more than a month before the IPO launched. Had Kotak informed our clients early on that they would not be able to provide IPO funding for the Nykaa IPO, our clients would have approached other financiers who were ready and willing to provide IPO funding to our clients. for this IPO.

So why is this notice growing in importance today, months after Grover sent it? That’s where the audio clip comes in. Last week, Grover found himself in the middle of a controversy for allegedly threatening to kill a Kotak Mahindra Bank employee. An audio clip of the same went viral on social media, in which Grover made death threats and name-calling at the employee.

In return, Kotak Mahindra Bank said on Sunday it would take legal action against Grover for using inappropriate language against the employee. The bank also recorded its objections against Grover for using such language.

Grover then took to social media to say the audio clip was fake, but oddly enough, he later deleted posts claiming the clip was fake.


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