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YES Bank to sell up to 10% each to Carlyle and Advent, raise Rs 8,900 crore – Moneycontrol

Yes Bank on July 29 stated that it would raise $1.1 billion (about 8,900 crore) in equity capital from funds affiliated with two global private equity investors – Carlyle and Advent International, with each investor having the option of acquiring up to a 10.0 percent share in Yes Bank.

The bank said this will be  raised  through  a  combination  of  ~$640Mn  (~Rs 5,100  crore)  in  equity  shares  and  ~$475Mn (~Rs 3,800 crore) through equity share warrants.

The capital raise is subject to shareholders’ approval at the EGM of the Bank to be held on August 4, 2022 and relevant regulatory / statutory approvals.

The bank further mentioned the capital raise will help it achieve its medium- to long-term sustainable growth goals and increase the bank’s capital adequacy.

Once approved, this would be one of the largest private capital raises by an Indian Private Sector Bank.

Yes Bank will issue up to 1.84 billion equity shares to Carlyle at Rs 13.78 per share.

The bank proposes 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 equity capital base of the bank.

The bank’s board also approved increase in authorised share capital to Rs 8,200 crore from Rs 6,200 crore currently.

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.”

Sunil Kaul, Managing Director and Financial Services sector lead for Carlyle in Asia, said, “We are confident about India’s long-term economic growth prospects and believe that Yes Bank is well-placed to capture this growth, given its strong capabilities in transaction banking and digital payments. The Bank’s leadership team, led by CEO Prashant Kumar and under the direction of its Board, has done very well in steering the Bank through challenging times, and the Bank is now well-positioned for the next phase of growth.”

Shweta Jalan, Managing Partner, Advent International said, “This investment also demonstrates our commitment to the country’s banking and financial services industry, which is the core of India’s growth story. We think the Bank’s leadership team, led by Prashant Kumar, has done great work in reviving its performance over the last two years. We look forward to working with the Bank and to drawing on our sector expertise in supporting YES BANK in its next phase of sustained growth.”

Yes Bank was advised by BofA Securities as an exclusive financial adviser and AZB & Partners as a legal advisor, while Carlyle was advised by Shardul Amarchand Mangaldas (SAM) and Advent was advised by Cyril Amarchand Mangaldas (CAM).