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RBI approves Yes Bank stake sale to equity firms Carlyle Group and Advent International; details here

Private equity firms Carlyle Group and Advent International have received provisional approval from the Reserve Bank of India to purchase up to 9.99 per cent each of Yes Bank. The lender broke out the news following a regulatory filing on Thursday. According to the bank, Yes Bank and its investors would work with the RBI to quickly resolve the requirements in order to receive the final clearance. But it didn’t go into detail about what these requirements were.Yes Bank will be able to have one of the highest capital ratios among competitors thanks to this move, which will be one of the biggest capital raisings by a domestic private lender. As of 30 September, Yes Bank’s overall capital adequacy ratio was 17.3 per cent.Yes Bank stated in July that it would sell the PE companies up to 3.69 billion shares for a price of Rs 13.78 each, or a total of Rs 5,093.3 crore. In addition, it will offer 2.56 billion warrants at a price of Rs 14.82 each to generate Rs 3,805.16 crore.At a special general meeting held on 24 August, shareholders approved the financing request. The bank announced on 29 July that its management had sanctioned funding of Rs 8,898 crore through the sale of shares and warrants to Advent International and the Carlyle Group. As per the RBI guidelines, consent is required for equity transactions of more than 4.99 per cent in a private bank to an investor.In accordance with the bank, 25 per cent of each warrant’s purchase price must be paid at the time of allocation, and the remaining 75 per cent must be paid when executing the option to exchange the warrants into equity shares. From 1 April 2023, the warrants are convertible in one or more installments, but no later than 15 days before the warrants’ 18-month term expires. One share is equal to one warrant. The bank’s board of directors may be nominated by each investor to include a non-executive and a non-retiring nominee director.Read all the Latest News, Trending News, Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.

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Published on : 2022-12-02 08:43:16

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