Yes Bank has announced a fundraising of $1.1 billion from Carlyle & Advent. Each of the private equity players will own a 10% stake in Yes Bank through a combination of shares and warrants. Both Carlyle and Advent have applied for a position on the board.
The bank is proposing to issue 370 crore equity shares on a preferential basis at a price of Rs 13.78 per share and 257 crore warrants convertible into equity shares at a price of Rs 14.82 per warrant, adding Rs 8,900 crore to the share capital of the lender.
The capital increase will further strengthen Yes Bank’s capital adequacy and contribute to the achievement of the bank’s medium to long-term sustainable growth objectives.
In an interview with CNBC-TV18, Shweta Jalan, managing partner of Advent International, said the lender’s NPA issues were largely behind it and it was at an inflection point. “We believe in history,” she said, adding that retail, SMEs and digital orientation are the bank’s main growth drivers.
Watch the attached video for the full interview