Approval. RBI grants conditional nod to Carlyle Group, Verventa Holdings to buy 10% stake in YES Bank

The Reserve Bank of India has granted a conditional approval to The Carlyle Group and Verventa Holdings to acquire 9.99 per cent stake each in YES Bank, the latter said without specifying the conditions.

“The Reserve Bank of India has issued a conditional approval to each Investor with respect to the proposed acquisition by each of them of up to 9.99% of paid up share capital of the Bank through subscription to equity shares and share warrants of the Bank. The investors are evaluating the conditions,” the private sector lender informed the exchanges.

The investors and YES Bank will engage with the central bank to seek an early resolution of the conditions to procure the final approval on this matter, the notification said.

The specified conditions do not pertain to compliance at the end of YES Bank, but have to do with the investors’ exposure held to other financial institutions in India, a source told businessline.

Fund raising plan

YES Bank, had in July, announced raising ₹8,900 crore from private equity investors, Carlyle Group and Advent International, where-in ₹5,100 crore was proposed to be raised through shares and ₹3,800 crore through share warrants. The CCI approved the stake sale in October.

The lender had then said that it plans to issue 370 crore shares at ₹13.78 per share, and 257 crore convertible warrants at ₹14.82 per warrant. Half of each will be issued to CA Basque Investments, part of the Carlyle Group, and Verventa Holdings Ltd, one the funds advised and managed by Advent International.

The entities will initially acquire 5.9 per cent stake each post the share issue, which will eventually rise to 10 per cent after the conversion of share warrants into shares.

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