The Yes Bank counter was in the thick of action on Tuesday amid feverish speculation on the two new nominees to its board.
The focus of attention was particularly at Carlyle where the toss-up is believed to be between Sunil Kaul and Aditya Puri, the former managing director of HDFC Bank.
Kaul is the managing director and financial services sector lead for Carlyle Asia.
While there were contradictory reports on who would be recommended between Kaul and Puri, the Yes Bank share rallied on the news that Puri will be joining its board.
At the BSE, the scrip ended with gains of 12.84 per cent at Rs 17.14. The total traded quantity stood at 10.80 crore shares compared with the twoweek average quantity of 3.31 crore shares.
Sunil Kaul. File picture
The nomination comes after Yes Bank raised $1.1 billion (around Rs 8,800 crore) as equity capital from Carlyle and Advent International.
The private equity investors will each acquire up to a 10 per cent stake in the bank, and they are entitled to board seats in the private sector lender. The funds will be raised through a combination of around $640 million (Rs 5,100 crore) in equity shares and $ 475 million (Rs 3,800 crore) through equity share warrants.
The buzz is that Shweta Jalan will represent Advent International on the board. Jalan is a managing partner at the private equity firm.
The names will be recommended by the two firms to the nomination & remuneration committee of Yes Bank which would then send them to the RBI for approval.
While the banking regulator vets board appointments with a fine tooth comb, observers feel that their appointments are likely to proceed without any hitch.
Yes Bank is proposing to amend its articles of association (AoA) to pave way for the two new nominees. The lender is instituting a new clause111A for which it is seeking shareholder approval.
“The company may enter into an agreement with any investor permitted to invest in Indian securities as per applicable laws, holding such percentage of paid-up capital of the company as the Board of Directors may decide from time to time,” the bank said.
