The board of Directors of Yes Bank on November 29, 2019 has taken a decision to raise upto $2 billion through the preferential allotment of the companies’ shares according to their latest filings with Exchange
Eight new investors have expressed interest in acquiring fresh stake in the bank including 3 institutional investors and five family offices.
The Interest sharers includes Citax Holdings Ltd & Citax Investment Group $500 million, GMR group & associates $50 million, Rekha Jhunjhunwala wife of Big R – Rakesh Jhunjhunwala $25 million, Aditya Birla Family Office $25 million and the first Canadian sikh billionare Erwin Singh Braich and SPGP Holdings backed by braich group will be bringing $1.2 billion.
Another investor with $120 million investment proposal is yet to be revealed by the bank. Discovery Capital $50 million and Ward Ferry will also invest $30 million, according to Yes Bank.
“None of the Investors will be allotted equity shares such that their holding exceeds 25% of the share capital of the bank,” the private lender said.
The next board meeting of bank will be held on December 10, 2019 to finalise and approve the details of preferential allotment. Then bank will call EGM for shareholders approval on preferential allotment.
Also check this detail at : Canadian Industrialist Erwin Singh Braich made $1.2bn bid for Yes bank.
The prior approval from RBI will also be required in this case. Yes bank immediately needs funds to maintain its capital adequacy and also to support its credit growth.
Yes Bank’s bad loans have risen sharply over last some years. In the last qtr this year, its gross non-performing assets (NPA) ratio was at 7.39% vs 5.01% in the previous quarter.