SBI, LIC to buy YES Bank stake at Rs 2 per share for Rs 490 crore

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Published: March 5, 2020 4:26 PM

SBI and LIC may acquire 49 per cent stake in YES Bank through preferential shares at Rs 2 per share for a total consideration of Rs 490 crore.

Hinduja Group, Yes Bank, Cerberus Capital Management, Gopichand Hinduja, Ashok Hinduja, Reserve Bank of India, Silver Point CapitalSEBI may also give SBI an exemption from making an open offer.

SBI and LIC may acquire 49 per cent stake in YES Bank through preferential shares at Rs 2 per share for a total consideration of Rs 490 crore, ET NOW reported citing unidentified sources. SEBI may also give SBI an exemption from making an open offer, the report added. Earlier in the day, the government approved the SBI and other government-backed financial institutions to take over cash-starved Yes Bank. The private lender, which is grappling with bad loans, is looking to raise fresh capital but the plans are facing uncertainties. The private lender also delayed the announcement of 2019 December 2019 quarter results due to the ongoing crisis. The SBI stock jumped 1.05 per cent following reports that the government has given the go-ahead to the lender and other financial institutions to take over capital-starved Yes Bank.

In a clarification to stock exchanges on reports that the government is said to have approved SBI’s plan to buy a stake in Yes Bank, the state-owned lender said it would disclose developments, if any, as per Sebi regulations. “We will abide by the timelines under Regulation 30 of Sebi (LODR) Regulations 2015 in disclosing the developments, if any in the matter to stock exchanges,” YES Bank added.

Also read: SBI might be all that Yes Bank wants but what does it mean for India’s largest PSU bank?

The promoters of Yes Bank — Madhu Kapur, Yes Capital (India) Pvt Ltd and Mags Finvest — hold 8.33 per cent stake in it, according to the data on the stock exchanges. The bank’s co-founder Rana Kapoor has already sold his entire stake in the bank. The foreign portfolio investors hold 15.17 per cent stake, state-owned LIC has 8.06 per cent, and mutual funds own 5.09 per cent.

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