YES Bank rises 2% as RBI gives conditional nod to Carlyle, Advent for stake buy

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Yes Bank shares rose 2 per cent in Friday trade after RBI gave conditional approval to US private equity firm Advent International and Carlyle Group Inc to buy a combined 20 per cent stake in Yes Bank.

In a BSE filing, the private lender said the central bank has issued a conditional approval in respect of the proposed acquisition of up to 9.99 per cent of the paid-up share capital of the bank by way of subscription of equity shares to each investor. Share Warrants of the Bank.

Following the development, the stock climbed 2.34 per cent to hit an intraday high of Rs 17.45 on the BSE.

Yes Bank said that investors are evaluating the conditions. The investment is offered by CA Basque Investments, a Carlyle Group firm, and Verventa Holdings, which is affiliated with funds managed by Advent.

Yes Bank said on Thursday, “Investors and the bank will hold talks with RBI for early resolution of the conditions to obtain final approval on the matter.”

Yes Bank Board has approved to create, offer, issue and allot up to 128,37,94,771 share warrants each through preferential allotment on private placement basis, subject to the approval of the shareholders of the bank.

CA Basque Investments and Verventa Holdings at a price of Rs. 14.82 per share warrant. In addition, those two investors will be allotted 369,61,55,702 shares at a price of Rs. 13.78 a piece.

Yes Bank said in July that it would raise $1.1 billion from Carlyle and Advent for a 10% stake each in the bank, as it looks to boost its capital and fund growth.

The money was to be raised by issuing shares worth $640 million and share warrants worth $475 million.

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