Yes Bank on Friday announced that it is raising $1.1 billion (₹8,900 crore) of equity capital from affiliated funds from private equity investors Carlyle and Advent International, with each investor acquiring a 10% stake in the bank.
The funds will be raised through a combination of $640 million (₹5,100 crore) invested in equity shares and $475 million (₹3,800 crore) through equity share warrants.
Capital raising is subject to shareholders’ approval and relevant regulatory approvals at the EGM on August 24.
“The raising of capital will enhance the capital adequacy of Yes Bank and help in the medium to long term sustainable development objectives of the Bank,” Yes Bank said in a statement. “Once approved, it will be one of the largest private capital raised by an Indian private sector bank,” it added.
The bank proposes to issue 370 crore equity shares on a preferential basis at ₹13.78 per share and 257 crore warrants convertible into equity shares at ₹14.82 per warrant, adding ₹8,900 crore to the equity capital base.
This is a testimony to the inherent strength of the franchisee of the bank, said Prashant Kumar, MD and CEO, Yes Bank.