Shares of Yes Bank climbed over 3 percent today after the Bank announced on Thursday, that the Reserve Bank of India (RBI) has conditionally approved the sale of securities worth Rs 8,898 crore to global private equity players Carlyle and Advent groups.

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At 2:15 pm shares of Yes Bank were trading at Rs 17.6, up by 3.23 percent from the previous close on the BSE.

"...the Reserve Bank of India has issued a conditional approval to each Investor with respect to the proposed acquisition by each of them of up to 9.99 percent of paid-up share capital of the Bank through subscription to equity shares and share warrants of the Bank and the Investors are evaluating the conditions," Yes Bank said in an exchange filing.

Further, the investors and the bank will engage with the RBI to seek an early resolution of the conditions to procure the final approval on this matter, it said.

In July this year, the Yes Bank board decided to issue over 369.61 crore equity shares and 256.75 crore warrants. These securities will be issued on a preferential basis for a total consideration of Rs 8,898.47 crore, according to a regulatory filing.

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CA Basque Investments, part of the Carlyle Group, and Verventa Holdings, an affiliate of funds managed by Advent, will be offered a little over 184.80 crore shares each at a price of Rs 13.78 apiece. Likewise, they will get more than 128.37 crore warrants each at a price of Rs 14.82.

Both the global PE funds will each acquire a 10 percent stake in the private sector lender, which had to be bailed out in an RBI and government-led reconstruction scheme for want of capital buffers and after the then management failed to sell the bank's story to investors.

Shares of Yes Bank ended at Rs 17.05, down by Rs 0.10, or 0.58 percent on the BSE.

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(Edited by : Shoma Bhattacharjee)

First Published:Dec 1, 2022 5:15 PM IST