YES Bank gets $1.2-b binding offer from global investor; shares surge 24%

Our Bureau Mumbai | Updated on November 01, 2019

Yes Bank is at the epicenter of rising stress in India’s credit markets.   -  Reuters

Unconfirmed reports say Hong Kong-based SPGP Holdings is the likely global investor putting money into the bank.

YES Bank on Thursday said it has received a binding offer from a global investor for an investment of $1.2 billion in the bank through fresh issuance of equity shares.

Simultaneously, the bank, in a stock exchange filing, emphasised that it continues to be in advanced discussions with other global and domestic investors. The private sector bank did not disclose the details about the global investor.

The bank’s stock soared 24.03 per cent on BSE to close at ₹70.45 a piece against the previous close of ₹56.80. Intra-day, it tested a high of ₹76.65 and a low of ₹54.90.

YES Bank said the investment is subject to regulatory approvals/conditions as well as clearance from its board and shareholders.

According to unconfirmed reports, Hong Kong-based SPGP Holdings is the likely global investor seeking to put money into the bank.

Last month, the bank informed the exchanges that it received strong interest from multiple foreign as well as domestic private equity and strategic investors for its capital raise and that it remained firmly on course to raising growth capital, subject to necessary approvals.

In August, YES Bank raised ₹1,930 crore via a qualified institutional placement. Five investors — Societe Generale, Key Square Master Fund LP, BNP Paribas Arbitrage, HDFC Trustee Co Ltd and Key Square Master Fund II LP — together accounted for 65.5 per cent of this investment.

The QIP’s issue price was ₹83.55 per equity share aggregating to ₹1,930.46 crore. The issue price was at a discount of 4.95 per cent to the floor price of ₹87.90 per equity share.

Those allotted more than 5 per cent of the shares offered under the August QIP issue were: Societe Generale (18.75 per cent), Key Square Master Fund LP (16.18 per cent), BNP Paribas Arbitrage (14.43 per cent), HDFC Trustee Co Ltd (10.26 per cent) and Key Square Master Fund II LP (5.88 per cent).


Published on October 31, 2019

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