Malaysia’s state investment arm, Khazanah Nasional, on Monday sold its entire holding in private sector lender YES Bank for about $110 million through block deals.
As on December 2011, Titiwangsa Investments Mauritius, an investment arm of Khazanah, held 14.7 million shares in Mumbai-based YES Bank. Khazanah had purchased the shares through secondary market in 2007 and had monetised its entire holding of 4.17 per cent, at approximately two-and-a-half times their original investment value,” YES Bank said in statement.
According to a source, a clutch of overseas and domestic institutional investors bought the shares.
The deal was took place at Rs 362 per share, a 1.2 percent discount to their Friday close, the source said. The price band for the deal was fixed at Rs 360 to Rs 362 a share.
"There was a very good response for the issue. The book was oversubscribed and we closed the book within two hours of launch early this morning," the source said.
Said Rana Kapoor, managing director and CEO, “The approximately $110 million transaction at market price, represents strong investment appetite for the stock.”
Credit Suisse (CSGN.VX) was the bookrunner for the deal, the sources said.
The share sale comes after investors Carlyle Group, Warburg Pincus and Temasek Holdings last month took advantage of India's recent market gains to pare stakes in three financial companies in deals worth about $740 million.
Nearly $5.3 billion has already been raised in India share sales via 10 deals so far in 2012, more than half of roughly $9 billion in all of 2011 from 84 issues, Thomson Reuters data showed.
Shares of Yes Bank closed at Rs 364, down Rs 2.20 or 0.60 per cent on Monday on the National Stock Exchange.