Yes Bank shares rise 2% after RBI gives conditional nod for stake

Shares of YES Bank rose 2 per cent in Friday's trade after the RBI gave conditional approval to US private equity firms Advent International and Carlyle Group Inc for their purchase of a combined 20 percent stake in YES Bank.

The private lender said in a BSE filing that the central bank has granted conditional approval to each investor with respect to the proposed acquisition of up to 9.99 per cent of the bank's share capital through subscription to equity shares and share warrants.

The stock was up 2.34 per cent after the development to hit a high of 17.45 on the BSE.

The investors are evaluating the conditions, YES Bank said. The investments are proposed by the CA Basque Investments, a Carlyle Group firm and Verventa Holdings, which is an affiliate of funds managed by Advent.

The banks and the RBI will work with the RBI to find an early resolution to the conditions to get the final approval on this matter, YES Bank said on Thursday.

The YES Bank board has approved to create, issue, issue and allot on a private placement basis, an aggregate of up to 128,37, 94,771 share warrants each, subject to the approval of the shareholders of the bank.

CA Basque Investments and Verventa Holdings have a price of Rs. 14.82 per share warrant. They will be given up to 369,61, 55,702 shares each at a price of Rs. Yes Bank said in July it would raise $1.1 billion from Carlyle and Advent for a 10% stake in the bank, as it looked to boost its capital and fund growth.

Shares worth $640 million and share warrants worth $475 million were to be raised by issuing shares worth $640 million and issuing shares worth $475 million.