Yes Bank to sell 10% stake each to Carlyle, Advent for Rs 8,900 crore

NEW DELHI: Private lender Yes Bank is raising equity capital of $1.1 billion (Rs 8,900 crore) from funds affiliated with two global private equity investors - Carlyle and Advent International, with each investor acquiring up to 10% stake in the bank.

The capital will be raised through a combination of $640 million (Rs 5,100 crore) in equity shares and $475 million (Rs 3,800 crore) through equity share warrants. This exercise is now subject to shareholders’ approval at the extraordinary general meeting (EGM) of the bank to be held on August 24, 2022, and relevant regulatory statutory approvals.

As per the bank, the capital raising will further bolster the capital adequacy and aid the bank’s medium-to-long term sustainable growth objectives.   In March 2020, when the bank was on the brink of a collapse, the State Bank of India (SBI) had invested Rs 7,250 crore ($910 million). SBI currently holds a 30% stake in Yes Bank.

Yes Bank has 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, adding Rs 8,900 crore to the equity capital base of the bank.

Prashant Kumar, managing director & chief executive officer of the bank, said, “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.”