Yes Bank on Tuesday said it will allot shares and warrants to private equity firms Carlyle Group and Advent International to raise Rs 8,887 crore. The bank’s board has approved the allotment of 369.6 crore shares and 255.9 crore share warrants to the investors.
Carlyle Group and Advent International each will be issued 184.81 crore equity shares at Rs 13.78 apiece. The bank has also allotted 127.98 crore share warrants to each of the investors, the bank said in an exchange filing.
Yes Bank has already received Rs 948 crore upfront from the investors, which is 25% of the total warrants issue. The lender will receive remaining 75% of the amount at the time of conversion of warrants into shares.
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The board has also approved appointment of officials of Sunil Kaul of Carlyle Group and Shweta Jalan of Advent Internationalon its board.
The announcement came after the bank in the previous week said it had received two more letters from the Reserve Bank of India (RBI) on the proposed share purchase by private equity firms. The RBI had earlier given its conditional approval to the proposed investment, through which each of the investors will acquire 9.99% stake in the bank.
State Bank of India (SBI) holds 30% stake in Yes Bank and is the largest public shareholder. Other banks, including ICICI Bank, Axis Bank, IDFC First Bank and Bandhan Bank, together account for an 8.22% shareholding. Life Insurance Corporation of India holds a 4.98% stake. Foreign portfolio investors hold 12.15% stake in the bank.
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The fundraising is aimed at improving the capital adequacy. The bank’s capital adequacy ratio stood at 17.30% as of September 30, compared to 17.60% a year ago.
Additionally, the bank is about to close the Rs 11,183- crore deal involving transfer
of stressed assets to JC Flowers ARC.