India’s Yes Bank has moved a step ahead to secure new financing as it seeks to overcome all financial difficulties.
In a stock exchange filing, the bank said that a number of investors are interested to purchase Yes Bank equities. If confirmed, the private-sector lender would procure up to $2bn in new financing.
Yes Bank has received interest from the family office of Erwin Singh Braich/ SPGP Holdings for an investment of $1.2bn. Currently, discussions are underway and expected to conclude soon.
The development comes a month after the lender announced to have received a binding offer of $1.2bn investment from a global investor. However, it did not disclose the name of the investor at that time.
The family office of Citax Holdings and Citax Investment Group are willing to purchase equities of up to $500m.
Similarly, the family offices of Aditya Birla, GMR Group and Associates and Rekha Jhunjhunwala are expected to invest $25m, $50m, and $25m, respectively.
Separately, Yes Bank received offer from Discovery Capital and Ward Ferry of $50m and $30m, respectively.
According to the filing, a US-based fund house will also buy $120m of equity shares in the bank. Yes bank will reveal the name of the house early next week.
“None of the investors will be allotted equity shares such that their holding exceeds 25% of the share capital of the bank,” the filing added.
Yes Bank board is scheduled to meet next week to finalise the preferential allotment. Subsequently, the arrangement will be subject to shareholders’ and regulatory approvals.