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Erwin Singh Braich: The Canadian businessman who has committed $1.2 billion in Yes Bank

Yes Bank's board of directors would meet on December 10 to finalise and approve the details of the preferential allotment as well as to get approval of the shareholders

twitter-logo BusinessToday.In   New Delhi     Last Updated: December 2, 2019  | 16:57 IST
Erwin Singh Braich: The Canadian businessman who has committed $1.2 billion in Yes Bank
Yes Bank: Erwin Singh Braich is the son of Canadian businessman Harman Singh Braich

Yes Bank, on Saturday, stated that it would raise money in a share sale with Canadian billionaire Erwin Singh Braich who will buy more than half of the bank's shares for $1.2 billion. Yes Bank said it would raise up to $2 billion through preferential allotment of shares from several investors. The rest of the shares would be taken up by private equity investors. The bank also said that the bank is holding talks with Braich and that it would be concluded soon. The bank has stated that apart from Braich and SPGP Holdings, investors such as Citax Holdings "individually expressed their agreement/willingness to subscribe equity shares".

Who is Erwin Singh Braich?

Erwin Braich is the son of businessman Herman Singh Braich. Herman Singh Braich migrated to Canada from Punjab in 1927. He founded a sawmill business in the 1950 that soon flourished. Herman Singh Braich passed away in 1976. Soon after Erwin Braich's father's death, the industrialist and philanthropist left his studies at the British Columbia to take over his father's business at the age of 20.

In 1999, Erwin Braich was petitioned into involuntary bankruptcy that led him to fight a 14-year-long legal battle. KPMG estimated his liabilities at more than $15.1 million, which was debated by Braich. It took more than a decade to discharge the bankruptcy charges. According to reports, during the course of the case, Braich had restrictions imposed by the Canadian government.

Yes Bank's board of directors would meet on December 10 to finalise and approve the details of the preferential allotment as well as to get approval of the shareholders. The preferential allotment would be subject to regulatory clearance.

The company had said, "Investors have individually expressed their agreement or willingness to subscribe to equity shares of the Bank for an aggregate amount of $2 Billion, which shall be undertaken on a preferential allotment basis."

Discovery Capital, GMR Group and Associates, Rekha Jhunjhunwala, Aditya Birla Family Office, Ward Ferry are among the 'institutional investors'.

Also read: Yes Bank to raise nearly $2 billion through preferential share allotment; board to meet on Dec 10

Also read: YES Bank share price falls over 7% after board decides to raise $2 billion via preferential allotment

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