Yes Bank receives RBI’s approval to raise funds from private equity majors
Yes Bank on Friday said it has received the RBI’s approval to raise funds from private equity majors — The Carlyle Group and Advent.
In July this year, the two private equity funds had expressed an intent to invest over Rs 8,000 crore in Yes Bank, subject to regulatory permissions. An approval from the Reserve Bank of India (RBI) is required to own over 5 per cent of a bank.
Last week, Yes Bank said that The Carlyle Group and Advent have got the RBI’s green signal to own up to 9.99 per cent each. The lender had then added that the “investors were evaluating the conditions. 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’’.
In a regulatory filing on Friday, Yes Bank said the RBI had earlier issued a “conditional’’ approval to both investors about the proposed acquisition by each of them of up to 9.99 per cent of its paid-up share capital through subscription to equity shares and share warrants, Yes Bank disclosed that it has now received two more letters from the banking regulator about the proposed investment.
“The bank shall now engage with the investors for the completion of the proposed capital raise, subject to various regulatory compliances and conditions precedent according to the respective investment agreements,” Yes Bank said.
The lender, however, did not disclose the conditions that were imposed by the RBI.
Shares of Yes Bank on Friday zoomed nearly 10 per cent to Rs 19.70 amid a broad rally in the banking counter.