Private equity investors Carlyle Group and Advent have received conditional approval from the Reserve Bank of India (RBI) to each purchase a 9.99% stake in Yes Bank.
Both private equity investors will infuse Rs 8,898.4 crore in combination with immediate capital and post-conversion of warrants, the bank said in a stock exchange disclosure.
The central bank gave its nod on Wednesday.
“The investors and the bank will engage with the RBI to seek an early resolution of the conditions to procure the final approval on this matter,” the bank informed the exchange. The investors are “evaluating the conditions”, it added.
The lender did not disclose the conditions imposed by the banking regulator.
ET was the first to report on February 4 and March 4 about Advent and Carlyle being in discussions with Yes Bank for a potential $1-billion investment.
The Rs 8,898-crore investment by Carlyle and Advent will be in two parts. Each investor will first acquire 1,848 million shares, or 5.9% equity, of Yes Bank at Rs 13.78 per share having a face value of Rs 2. Separately, the bank will issue warrants which will be converted into shares at Rs 14.82 a share after 18 months.
On November 28, the bank had informed the exchange that it entered into a share purchase agreement with JC Flowers ARC and Emso Asset Management to acquire a 19.9% stake in J C Flowers ARC. The bank had passed a resolution to sell Rs 48,000 crore stressed loans to JC Flowers ARC.
Rana Kapoor founded Yes Bank, which was bailed out by the State Bank of India two years ago, has been in market for over two years to Rs 10,000 crore equity
The shares of Yes Bank closed at Rs 17.05 on the Bombay Stock Exchange on Thursday.