Carlyle, Advent buy 9.99% stake in Yes Bank, to pump in about Rs 8,896 cr

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Yes Bank on Tuesday said private equity majors Carlyle Group and Advent have picked up 9.99 per cent stake in the bank.

The two private equity (PE) funds together would pump in about Rs 8,896 crore in Yes Bank with full conversion of warrants into equity.

The bank has allotted a total of 369.61 crore shares of face value Rs 2 each and 255.97 share warrants convertible into equity shares of face value Rs 2 each on a preferential basis to CA Basque Investments, a Carlyle Group entity, and Verventa Holdings Limited, an Advent group entity, Yes Bank said in a regulatory filing.

Pursuant to the allotment of the equity shares, the total issued and paid-up share capital of Yes Bank has increased from Rs 5,011.31 to Rs 5,750.54, it said.

CA Basque Investments was allotted 184.80 shares with a face value of Rs 2 at an issue price of Rs 13.78 and 127.98 share warrants carrying a right to exercise, get issued and allotted 1 (One) equity share with a face value of Rs 2 for each warrant at a price of Rs 14.82, it said.

Verventa Holdings Limited was allotted 184.80 equity shares with a face value of Rs 2 each at an issue price of Rs 13.78 and 127.98 share warrants carrying a right to exercise, get issued and allotted 1 (One) equity share with a face value of Rs 2 at a price of Rs. 14.82, it added.

For equity shares, both the private equity players paid Rs 2,546.65 crore each. For share warrants, they paid Rs 1,896.78 crore, of which Rs 474.19 crore (25 per cent) has been paid upfront by both of them at the time of allotment.

The balance 75 per cent of the per share warrant price shall be payable to the bank at the time of issue and allotment of the equity shares upon exercise of the option attached to the relevant share warrant, Yes Bank said.

Yes Bank had to be bailed out by fellow lenders in a Reserve Bank of India-led scheme in 2020 after alleged malfeasance by its founders led to a huge chunk of loans turning sour.

The investment by the PE funds will be one of the biggest in the banking sector in recent times. It was announced after the bank was able to make progress on a plan to house nearly Rs 50,000 crore of bad loans in a newly carved asset reconstruction company for which it has tied up with JC Flowers.