RBI APPROVES YES BANK STAKE SALE TO PE FIRMS, WITH RIDERS

MUMBAI: The Reserve Bank of India has given a conditional approval to private equity investors Carlyle Group and Advent International to acquire up to 9.99% each, in Yes Bank, the private lender said in a regulatory filing on Thursday.

“We hereby inform you that vide separate letters dated 30 November, RBI has issued a conditional approval to each investor on proposed acquisition by each of up to 9.99% of paid-up share capital of the bank through subscription to equity shares and share warrants of the bank. Investors are evaluating the conditions,” it said.

Yes Bank and its investors will engage with RBI for an early resolution of the conditions to procure the final approval, the bank added. It, however, did not elaborate on what these conditions were.

On August 24, shareholders approved the fundraising proposal at an extraordinary general meeting. On July 29, the bank said its board approved the raising of ₹8,898 crore by selling shares and warrants to the Carlyle Group and Advent International. Under RBI regulations, stake sales of over 4.99% in a private bank to an investor requires approval.

This will be one of the largest capital raising by a domestic private lender and will enable Yes Bank to have one of the highest capital ratios among peers. Yes Bank’s total capital adequacy ratio stood at 17.3% as of September 30.

In July, Yes Bank said it will sell up to 3.69 billion shares at ₹13.78 apiece (worth ₹5,093.3 crore) to the PE firms. Besides, it will issue 2.56 billion warrants at ₹14.82 per warrant to raise ₹3,805.16 crore.