Following its conditional approval, the Reserve Bank of India has issued two letters to Yes Bank as an approval to its proposed capital-raise plan from the Carlyle Group and Verventa Holdings, an affiliate of funds managed by Advent International, the bank informed the exchanges. Shares of Yes Bank hit the 52-week high of Rs 20.50 after the announcement. The scrip closed at Rs 19.85 on the NSE, higher by 11.83% compared to its previous close.
“The bank shall now engage with the investors for the completion of the proposed capital raise,” the lender said in a notice to the exchanges.
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The RBI had earlier given its conditional approval to the proposed investment. As per the announcement, Carlyle and Advent International will each acquire 9.99% stake in the lender. The bank earlier this year had said it would raise up to Rs 8,900 crore from the two private equity investors by issuing 3,700 million shares on a preferential basis at Rs 13.78 per share and 2,570 million warrants at Rs 14.82 apiece. The share price in the preferential issue is at 42% discount to the share price on Friday.
State Bank of India holds a 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 8.22% shareholding, and LIC holds a 4.98% stake. Foreign portfolio investors hold 12.15% stake in the bank.
The fundraising is aimed at improving the capital adequacy of the bank. The capital adequacy ratio stood at 17.30% as of September 30, compared to 17.60% a year ago.
The bank is also about to close the Rs 11,183-crore deal involving transfer of stressed assets to JC Flowers ARC. The bank’s gross non-performing asset (NPA) ratio stood at 12.9% as of September 30 while the net NPA ratio was at 3.6%.
