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YES Bank approved the proposal to sell 10% of its stake to private equity investment Carlyle Group and Advent International for ₹8,898 crores at a board meeting. The sale indeed is subject to regulatory approvals from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI).
The bank will cumulatively issue 369 crore equity shares at a price of ₹13.78 per share, along with 256 crore share warrants at a price of ₹14.82 per warrant to both investors
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The authorized share capital of the bank will increase from ₹6,200 crore to ₹8,200 crores.
The deal is expected to close down in the next 4 to 10 weeks. Once the deal is closed, it will become the largest private capital raised by an Indian Private sector bank.
“The capital raised is subject to shareholders’ approval at the EGM of the Bank to be held on August 24, 2022 and relevant regulatory / statutory approvals," the bank said in an official release.
“The capital raise will further bolster the capital adequacy of YES BANK and aid the Bank’s medium to long term sustainable growth objectives. Once approved, this would be one of the largest private capital raises by an Indian Private Sector Bank," the statement read.
Prashant Kumar, Managing Director & Chief Executive Officer, Yes Bank said, “We are extremely pleased to onboard pedigreed investors like Carlyle and Advent International as our partners, in fulfilling the Bank's long-term strategy. This is a testimony to the inherent strength of the Bank’s franchise. We are excited about the incremental opportunities that this partnership creates for us and confident that both the investors will play a crucial role in the next growth phase of the Bank."
The shares of the bank closed up by 2.75% at Rs. 14.95 apiece.
-by Gautam
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