Yes Bank Chief Executive Officer (CEO) Ravneet Gill has cleared the air on the issue of potential investors in the private lender, saying major European financial institutions who are well-regulated, have shown interest in buying stake and that it would reveal their names soon. Gill assured that since these investors were well-regulated, no one would have any concerns regarding their ability to pump in money in the bank.
The private lender aims to raise $2 billion via stake sale. Though several investors have shown interest, Gill has indicated that the lender may not issue shares to family offices. "Large European financial institutions regulated by the Financial Conduct Authority have shown an interest in the bank," Ravneet Gill told Business Standard, adding that the talks were at an advanced stage and soon after entering into a binding agreement, Yes Bank would make the final names public.
The market analysts had earlier raised concerns over the credibility of investors like Erwin Singh Braich and SPGP, citing that it was not even able to pay up Rs 2 crore as earnest money to express its seriousness in buying the sick apparel maker Reid & Taylor (R&T) in January. On the question of doubts over financial ability of these investors, Gill told the daily: "When these bids become binding and once we disclose the names, then nobody would have any concerns with regard to the quality of investors or their ability to put in the money. So, it will effectively put a lid on the issue once and for all," Gill said.
Analysts had also raised doubts, saying YES Bank would not get the RBI's nod for such a huge stake sale with "non-institutional investors". Clearing the bank's stand, Gill said the final investors would easily get a go-ahead from the Reserve Bank of India as they were "fit and proper".
Yes Bank on Tuesday told the stock exchanges that its board could consider investment offer of $500 million from Citax Holdings and Citax Investment Group, adding that it would continue to evaluate other potential investors, including SPGP Holdings and Canada's Erwin Singh Braich, to raise more capital.
On November 30, YES Bank had disclosed the list of potential investors willing to infuse funds into the bank. The bank had also mentioned that the family office of Erwin Singh Braich/SPGP Holdings had committed to invest $1.2 billion, while US-based Capital International announced investment of at least $120 million in the bank. Among others who showed willingness for fund infusion were GMR Group and Associates ($50 million), Aditya Birla Family Office ($25 million) and Citax Holdings Ltd & Citax Investment Group ($500 million).
Edited by Manoj Sharma