Yes Bank Ltd said a global entity has made a binding offer to invest $ 1.2 billion in the cash-starved lender through an issue of new shares, boosting its stock by as much as 35 per cent, even as concerns remain about whether the proposal will pass muster with the banking regulator.
If the investment is cleared by the Reserve Bank of India (RBI), will diminish the shareholding of Yes Bank’s promoters Rana Kapoor and Madhu Kapur, wife of late Ashok Kapur. A single investor had a large issuance which may result in a change of bank’s promoters.
Yes Bank’s shares, which soared after its exchange filing, ceded some gains later to close the day 24per cent higher at Rs 70.45 on the BSE, on a day the benchmark Sensex rose 0.19 per cent. According to the bankers, Yes Bank Ltd may raise $ 1.2 billion from multiple investors for the ease of getting approval from the Reserve Bank of India (RBI) and also avoiding an open offer. According to these bankers, who spoke on condition of anonymity, Yes Bank officials have held discussions with four-five potential investors. Under this option, each investor may end up acquiring less than 10 per cent in Yes Bank.