Yes Bank gets binding offer of $1.2 bn from Hong Kong's SPGP Holdings: report
31 October 2019
Yes Bank has received a binding offer from a global investor for an investment of $1.2 billion through fresh issuance of shares, the bank told stock exchanges.
A CNBC-TV18 report citing sources said Yes Bank has received a binding offer of $1.2 billion from Hong Kong's SPGP Holdings and that the bank will study the proposal at its board meeting on Friday.
Yes Bank in its statement to stock exchanges said, "The Bank continues to be in advanced discussions with other global and domestic investors," as well.
Yes Bank, which last month announced plans to raise capital, said it has received "strong interest" from multiple foreign as well as domestic private equity and strategic investors for the capital raise.
The bank said, "It remains firmly on course to raising growth capital subject to necessary approvals."
Shares of Yes Bank jumped post the announcement and closed the day higher by 23.77 per cent, at Rs 70.30 per piece.
Yes Bank shares jump as it receives binding offer from a global investor worth $1.2 billion
Shagun Gogia, late Ashok Kapur’s daughter and part of Yes Bank’s co-promoter family, said that the Kapur family will extend its full support to the bank’s management in its capital raising exercise.
Gogia and family currently hold over 8.3 per cent stake in Yes Bank and are the single largest shareholders after the other promoter Rana Kapoor group’s holding recently fell to 0.8 per cent due to pledged share sale by Reliance Nippon Asset Management.
Earlier in August, the bank had raised Rs1,930.46 crore through qualified institutional placement (QIP) to fund its business expansion.
According to an Economic Times report dated October 7, Yes Bank was in talks with private equity firms TPG, The Carlyle Group and Farallon Capital.
Another report in Mint said three top technology companies, including Microsoft, are interested in buying a strategic stake in the bank. These talks began three weeks ago, and Yes Bank could reportedly sell as much as 15 per cent through equity issuances.
Yes Bank has been facing harrowing times since August last year when the RBI refused to give co-founder and chief executive Rana Kapoor a new term and instead asked him to leave the bank by 31 January 2019, governance lapses.
Ravneet Gill, who took over in March, discovered many chinks in the balance-sheet, which had to be provided for, resulting in the bank reporting its maiden loss in the March 2019 quarter. The balance sheet size has been shrunk by around 4 percentage points since then as a result of the same.