Yes Bank says 8 investors ready to infuse $2 billion in funding

Yes Bank has invoked 65 lakh pledged shares of Reliance Infrastructure’s promoter between November 25 to 28. These shares were held by Reliance Project Ventures and Management

Yes Bank has invoked 65 lakh pledged shares of Reliance Infrastructure’s promoter between November 25 to 28. These shares were held by Reliance Project Ventures and Management

Canadian industrialist Erwin Singh Braich and SPGP Holdings that is backed by Braich will be bringing in the largest chunk of $1.2 billion. With regard to interest from Erwin Singh Braich/SPGP Holdings, the bank said in its regulatory filing that "discussions with investor ongoing and expected to be concluded shortly".

In its announcement, Yes Bank said other investors who have committed to buying shares include Discovery Capital, Aditya Birla Family Office from India and Citax Holdings Ltd & Citax Investment Group.

Yes Bank's shares ended at Rs 68.30 on Friday, down by 2.50% from its previous closing.

The Yes Bank board on Friday approved a proposal to raise $2 billion equity from eight investors who had individually shown an interest in picking up a stake in the bank. These include three institutional investors and five family offices, the private lender said after nearly 12-hour long board meeting that was held on November 29. Besides, a top-tier United States fund house has evinced Interest to invest $120 million.

Yes Bank said that the preferential allotment will be subject to regulatory and statutory approvals.

Yes Bank further articulated that its board of directors will meet again on December 10 to conclude and sanction the details of preferential allotment. It will also convene an extraordinary general meeting subsequently to obtain the approval of the shareholders.

The banking regulator can allow a "regulated, well diversified and listed/supranational institution/ public sector undertaking/government" to hold up to 40 per cent in a bank.

The bank has to maintain at least 26 percent of shareholding in the hands of domestic investors at all times.

With exposure to several troubled shadow banks, real estate firms and stressed companies, Yes Bank's bad loans have risen sharply, forcing it to step up provisioning and eroding its capital.

On November 19, the bank had informed the exchanges that Rana Kapoor and promoter entities - Yes Capital and Morgan Credits - have sold their remaining 0.8 per cent stake in the private lender. The bank's stock closed at Rs 70.05 on Thursday. The lender's gross bad loans as a percentage of total loans - a measure of asset quality - spiked to 7.39 per cent in last quarter.

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