Money & Banking

YES Bank yet to take a call on proposed $1.2-b investment by Canadian tycoon Braich, SPGP

Mumbai | Updated on December 10, 2019 Published on December 10, 2019

Lender says it will ‘favourably consider’ the $500-million offer from Citax

The board of directors of private sector lender YES Bank is yet to take a call on the proposed $1.2-billion investment from Canadian billionaire Erwin Singh Braich, but has decided to favourably consider the proposed $500-million investment of Citax Holdings and Citax Investment Group.

“The board is willing to favourably consider the offer of $500 million of Citax Holdings and Citax Investment Group, and the final decision regarding allotment to follow in the next board meeting, subject to requisite regulatory approval(s),” YES Bank said in a regulatory filing on Tuesday after the meeting of its board.

“The binding offer of $1.2 billion submitted by Erwin Singh Braich / SPGP Holdings continues to be under discussion,” it further said.

The private sector lender will also continue to evaluate other potential investors to raise capital of up to $2 billion. Another round of meetings of the board is likely soon, though the date is yet to be finalised.

“The proposed investment from Citax is almost a closed deal now. Discussions are still continuing about the other investors,” sources indicated. The board of YES Bank had, on November 29, approved capital-raising plans of $2 billion dollar through the preferential allotment of shares.

Apart from Citax and Braich, other proposed investors include a top-tier US fund house, which is willing to invest $120 million; GMR Group and Associates, which wants to invest $50 million; Aditya Birla Family Office and Rekha Jhunjhunwala who are keen to pledge $25 million each.

Foreign institutional investors Discovery Capital and Ward Ferry are willing to invest $50 million and $30 million, respectively. YES Bank has been working to raise funds as it looks to shore up its capital base.

Its CET-I ratio stands at 8.7 per cent, which is just above the regulatory requirement of 8 per cent.

Published on December 10, 2019
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