RBI approves YES Bank’s capital increase plan from Carlyle Group and Verventa Holdings

YES Bank

The Reserve Bank of India has now issued two letters to YES Bank as the final go-ahead for its proposed capital increase plan from the Carlyle Group and Verventa Holdings, the bank notified the exchanges.

“We wish to hereby inform that the bank is now in receipt of two further letters (separate to each investor) from the RBI in relation to the proposed investment,” it said.

According to the private sector lender, YES Bank would now engage with investors to complete the proposed capital raise, subject to various regulatory compliances and conditions precedent as per the respective investment agreements.

On November 30, the RBI granted conditional approval to CA Basque Investments, a subsidiary of the Carlyle Group, and Verventa Holdings Limited, a subsidiary of Advent International, to purchase a 9.99 percent stake in the bank for Rs 8,900 crore.

YES Bank said in July that it intends to raise 5,100 crore through shares and 3,800 crore through share warrants. It intends to issue 370 crore shares at a price of 13.78 per share and 257 crore convertible warrants at a price of 14.82 per warrant. Following the share offering, the two investors will each receive a 5.9 percent interest, which will eventually increase to 10 per cent following the conversion of share warrants into shares.

"Exciting news! Elets Banking & Finance Post is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!

Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/

Get a chance to meet the Who's who of the Banking & Finance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.