Yes Bank hits 52-week high after RBI approves stake sale to Carlyle, Advent

Yes Bank surged 11.83% to Rs 19.85 after the Reserve Bank of India gave a conditional approval to private equity investors Carlyle Group and Advent International to acquire up to 9.99% each, in the bank.

"We hereby inform you that vide separate letters dated 30 November, RBI has issued a conditional approval to each investor on proposed acquisition by each of up to 9.99% of paid-up share capital of the bank through subscription to equity shares and share warrants of the bank. Investors are evaluating the conditions," Yes Bank said.

In July, Yes Bank announced raising equity capital of about $1.1 billion (~ Rs 8,900 crore) from funds affiliated with two global private equity investors - Carlyle and Advent International, with each investor potentially acquiring upto a 10.0% stake in Yes Bank. This will be raised through a combination of ~$640 million (~Rs 5,100 crore) in equity shares and ~$475 million (~Rs 3,800 crore) through equity share warrants.

The capital raise will further bolster the capital adequacy of Yes Bank and aid the bank's medium to long term sustainable growth objectives. Once approved, this would be one of the largest private capital raises by an Indian private sector bank.

The bank proposes to issue about 370 crore equity shares on a preferential basis at a price of Rs 13.78 per share and about 257 crore warrants convertible into equity shares at a price of Rs 14.82 per warrant, adding ~Rs 8,900 crore to the equity capital base of the bank.

Yes Bank is a full service commercial bank providing a complete range of products, services and technology driven digital offerings, catering to corporate, MSME & retail customers.

Yes Bank reported 32.23% decline in standalone net profit to Rs 152.82 crore despite of a 17.75% increase in total income to Rs 6,394.11 crore in Q2 FY23 over Q2 FY22.

The scrip hit a 52-week high of Rs 20.50 today.

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