Yes Bank to allot shares, warrants to Carlyle Group, Advent International

Yes Bank on Tuesday said it will issue shares, warrants to US private equity firms Carlyle Group and Advent International. In a stock exchange filing, the lender said it has also appointed a nominee each from the PE firms as additional directors on its Board. Sunil Kaul is Carlyle's nominee while Shweta Jalan is Advent's nominee

Yes Bank's board approves allotment of 361.61 crore equity shares, 255.97 crore warrants to the two investors.

CA BAsque Investments (Carlyle Group) and Verventa Holdings (Advent International) will get 184.8 crore shares and 127.98 crore warrants each.

Reserve Bank of India had earlier this month given conditional approval to the US private equity firms and Advent International for their purchase of a combined 20% stake in Yes Bank.

The two PE funds in July this year expressed an intent to pump-in over Rs 8,000 crore in Yes Bank subject to regulatory permissions. Regulatory nod is required for owning over 5 per cent in a bank.

Yes Bank had to be bailed out by fellow lenders in a RBI-led scheme in 2020, after alleged malfeasance by its founders led to a huge chunk of loans turning sour. The SBI-led scheme had to be implemented after the bank failed to raise capital.

The investment by the PE funds will be one of the biggest in the banking sector in recent times, and was announced after the bank was able to make progress on a plan to house nearly Rs 50,000 crore of bad loans in a newly carved asset reconstruction company, for which it has tied up with JC Flowers.

On Tuesday, the lender's scrip on BSE rose 5% to hit a fresh 52-week high of Rs 22.10. With this, the scrip rose 27% in four days.