Yes Bank to raise Rs 8,900 cr from two global private equity investors

The capital raise is subject to shareholders' approval at the EGM of the bank to be held on 24 August 2022 and relevant regulatory/statutory approvals.

Yes Bank on Friday (29 July 2022) announced raising equity capital of about $1.1 billion (~ Rs 8,900 crore) from funds affiliated with two global private equity investors - Carlyle and Advent International, with each investor potentially acquiring upto a 10.0% stake in Yes Bank. This will be raised through a combination of ~$640 million (~Rs 5,100 crore) in equity shares and ~$475 million (~Rs 3,800 crore) through equity share warrants.

The capital raise will further bolster the capital adequacy of Yes Bank and aid the bank's medium to long term sustainable growth objectives. Once approved, this would be one of the largest private capital raises by an Indian private sector bank.

The bank proposes to issue about 370 crore equity shares on a preferential basis at a price of Rs 13.78 per share and about 257 crore warrants convertible into equity shares at a price of Rs 14.82 per warrant, adding ~Rs 8,900 crore to the equity capital base of the bank.

Prashant Kumar, managing director & chief executive officer, Yes Bank said, "We are extremely pleased to onboard such pedigreed investors like Carlyle and Advent International as our partners, in fulfilling the long-term strategy of the Bank. This is a testimony to the inherent strength of the Bank's franchise. We are excited about the incremental opportunities that this partnership creates for us and confident that both the investors will play a crucial role in the next growth phase of the Bank."

Carlyle is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit, and Global Investment Solutions.

Advent International is one of the largest and most experienced global private equity investors. The firm has invested in over 395 private equity investments across 41 countries, and as of 31 March 2022, had $75.9 billion in assets under management.

Yes Bank is a full service commercial bank providing a complete range of products, services and technology driven digital offerings, catering to retail, MSME as well as corporate clients.

The bank reported 50.2% jump in standalone net profit to Rs 310.63 crore on 9.7% increase in total income to Rs 5,916.28 crore in Q1 FY23 over Q1 FY22.

Shares of Yes Bank rose 2.47% to Rs 14.94 on Friday, 29 July 2022.

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