Yes Bank to allot shares, warrants to Carlyle Group and Advent International

In a stock exchange filing, Yes Bank said, “Allotment of a total of 369,61,55,702 (Three Hundred Sixty Nine Crore Sixty One Lakh Fifty Five Thousand Seven Hundred and Two) equity shares of face value Rs. 2 /- (Rupees Two only) each and 255,97,61,818 (Two Hundred Fifty Five Crore Ninety Seven Lakh Sixty One Thousand Eight Hundred and Eighteen) share warrants convertible into equity shares of face value Rs. 2 /- (Rupees Two only) each on a preferential basis to CA Basque Investments (“Investor I”) and Verventa Holdings Limited (“Investor II”).”

The private lender also said that it has appointed a nominee each from the PE firms as additional directors on its Board. Sunil Kaul is Carlyle’s nominee while Shweta Jalan is Advent’s nominee.

The bank will issue 184.8 crore shares to Carlyle Group entity CA Basque Investments at ₹13.78 per share, and 127.98 crore convertible warrants at ₹14.82 per warrant. These warrants are convertible into 1 share each.

Similarly, Advent International’s entity Verventa Holdings will get 184.8 crore shares at ₹13.78 per share, and 127.98 crore convertible warrants at ₹14.82 per warrant.

The two PE funds in July 2022 expressed an intent to pump-in more than ₹8,000 crore in Yes Bank subject to regulatory permissions. Regulatory nod is required for owning over 5% in a bank.

The bank had to be bailed out by fellow lenders in a central bank-led scheme in 2020, after alleged malfeasance by its founders led to a huge chunk of loans turning sour. The SBI-led scheme had to be implemented after the bank failed to raise capital.

The investment by the PE funds will be one of the biggest in the banking sector in recent times, and was announced after the bank was able to make progress on a plan to house nearly ₹50,000 crore of bad loans in a newly carved asset reconstruction company, for which it has tied up with JC Flowers.

Shares of Yes Bank closed 13.78% higher at ₹23.95 apiece on the BSE on Tuesday.