Yes Bank on Friday announced it was raising equity capital of $1.1 billion (₹8,900 crore) from funds affiliated with private equity investors Carlyle and Advent International, with each investor acquiring up to a 10% stake in the bank.
The funds would be raised through a combination of $640 million (₹5,100 crore) invested in equity shares, and $475 million (₹3,800 crore) through equity share warrants.
The capital raise is subject to shareholders’ approval at the EGM to be held on August 24 and relevant regulatory approvals.
“The capital raise will further bolster the capital adequacy of Yes Bank and aid the bank’s medium to long term sustainable growth objectives,” Yes Bank said in a statement. “Once approved, this would be one of the largest private capital raises by an Indian private sector bank,” it added.
The bank proposes to issue 370 crore equity shares on a preferential basis at a price of ₹13.78 per share and 257 crore warrants convertible into equity shares at a price of ₹14.82 per warrant, adding ₹8,900 crore to the equity capital base.
“This is a testimony to the inherent strength of the bank’s franchise,” said Prashant Kumar, MD & CEO, Yes Bank.
