Mumbai: Yes BankNSE -0.61 %, facing investor wrath over the actual amount of its stressed assets, is in talks with two private equity investors – Advent International and Apax Partners – to raise equity funds to build investor confidence after attempts for a share sale to a broader set of institutional investors did not materialise, said two people familiar with the matter.
The bank may raise as much as Rs 3,000 crore from the share sale to private equity investors as its new chief exec ..
Yes Bank is undergoing management change amid doubts about the quality of assets. While it reported a record loss of Rs 1,506 crore in the March quarter due to exposure to aviation, infra and real estate turning bad and said the worst may be over, investors are sceptical.
The bank could dilute less than 10 per cent and less than 5 per cent to the two private equity firms each. At current prices it may be Rs 3,400 crore. The private lender has been under the RBI radar had last raised about Rs 4,906 crore through QIP in March 2017 at a price of Rs 300 per share (adjusted to stock split from Rs 10 to Rs 2). This was after an aborted attempt to raise a billion dollar through QIP in September 2016, that had to be pulled out soon after its launch
For private equity investors too, this could be an opportunity to take a slice of that Indian financial services that is set to benefit from the forecast economic growth revival in Prime Minister Modi’s second term.
Fortunes of corporate of banks are on an upswing with ICICI Bank and Axis Bank trading at near life-time highs as investors bet that these are set to benefit after the clean-up of their bad loans.
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