On July 22, shares of Yes Bank gained interest from buyers for the fifth day in a row, with reports that Carlyle and Advent were close to acquiring a large stake in the company.

This came after a private lender tied up with JC Flowers Asset Reconstruction Co to sell its bad debts.

Carlyle and Advant executives held a series of meetings this week with executives from Yes Bank and officials from the private Bank’s largest shareholders, the State Bank of India and the Reserve Bank of India (RBI), to fine-tune the outline of the deal, media reports said.

According to the Economic Times, the potential investment could be $1 billion. The Bank is worth about $4 billion. The company said the stake sale could be in the form of senior warrants that can be converted into shares in the future.

As of now, Yes Bank can issue up to 3.8 billion warrants, so SBI’s stake remains at 26%. According to Yes Bank’s restructuring plan, SBI’s stake in the Bank cannot fall below 26% by March 2023. The plan for 2020 is to lock most of the Bank’s shares for three years, and they will lift the restrictions early next year.

Yes, Bank is scheduled to report its first-quarter earnings on July 23. Its financial performance has been steadily improving under new management.

The Bank was trading more than 2% higher on the BSE at 10 am. The stock has risen 18% in the past month.
Not many analysts are positive about Yes Bank. Of those with ratings, the majority are bearish.