Following its conditional approval last month, the Reserve Bank of India has now issued two letters to YES Bank as the final go-ahead for its proposed capital raise plan from the Carlyle Group and Verventa Holdings, the bank informed the exchanges.
“We wish to hereby inform that the bank is now in receipt of two further letters (separate to each investor) from the RBI in relation to the proposed investment,” it said.
YES Bank will now engage with the investors for completion of the proposed capital raise, subject to various regulatory compliances and conditions precedent as per the respective Investment agreements, said the private sector lender.
The RBI had granted a conditional approval on November 30 to CA Basque Investments, part of the Carlyle Group, and Verventa Holdings Limited, and affiliate of Advent International, to acquire 9.99 per cent stake in the bank for ₹8,900 crore.
YES Bank had, in July, announced that it plans to raise ₹5,100 through shares and ₹3,800 crore through share warrants. It plans to cumulatively issue 370 crore shares at ₹13.78 per share, and 257 crore convertible warrants at ₹14.82 per warrant. The two investors will initially acquire 5.9 per cent stake each post the share issue, which will eventually rise to 10 per cent post conversion of share warrants into shares.