Private lender Yes Bank's board on Friday approved to raise a capital of Rs 8,898 crore from funds affiliated with private equity investors Carlyle and Advent International. Both the funds will potentially acquire 10 per cent stake each in the bank, Yes Bank said in a regulatory filing. This will be raised through a combination of Rs 5,100 crore in equity shares and Rs 3,800 crore through equity share warrants, it added.
Further, Yes Bank also increased authorized share capital to Rs 8,200 crore from Rs 6,200 crore.
"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 lender said in a statement.
During the board meeting, the bank proposed to issue Rs 370 crore equity shares on a preferential basis at a price of Rs 13.78 per share and Rs 257 crore warrants convertible into equity shares at a price of Rs 14.82 per warrant to both the investors.
The lender's Board of Directors has approved the convening of an extraordinary general meeting of the shareholders of the bank on August 24, 2022 to increase the authorised share capital of the bank, amendment to the Articles of Association of the Bank, appointment of R Gandhi as independent director.
Prashant Kumar, Managing Director & Chief Executive Officer, Yes Bank said, “We are extremely pleased to onboard such pedigreed investors like Carlyle and Advent International as our partners, in fulfilling the long-term strategy of the Bank. 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.”
Shweta Jalan, Managing Partner, Advent International said, “This investment also demonstrates our commitment to the country’s banking and financial services industry, which is the core of India's growth story... We look forward to working with the Bank and to drawing on our sector expertise in supporting YES BANK in its next phase of sustained growth.”
Shares of Yes Bank on Friday closed 2.47 per cent higher at Rs 14.94 apiece on BSE.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today