YES Bank up 19% in 2 days on RBI nod to proceed with Carlyle, Verventa deal

Shares of YES Bank jumped 7 per cent to Rs 21.10 to hit a 29-month high on the BSE in Monday’s intra-day trade on the back of heavy volumes.

In the past two trading days, the stock of the private sector lender has soared 17 per cent after it received the Reserve Bank of India's (RBI) nod to raise capital from funds affiliated to global private equity investors Carlyle and Advent International.

In today's intra-day trade, YES Bank was at its highest level since July 2020. At 10:56 am; it was quoting 6.9 per cent higher at Rs 21.05 as compared to a 0.06 per cent rise in the S&P BSE Sensex. The average trading volumes on the counter jumped 1.4 times with a combined 444 million shares changing hands on the NSE and BSE.

On Friday, the Reserve Bank of India (RBI) issued two letters to YES Bank as the final go-ahead for its proposed capital raise plan from the Carlyle Group and Verventa Holdings.

“We wish to hereby inform that the bank is now in receipt of two further letters (separate to each investor) from the RBI in relation to the proposed investment,” the bank said in a filing.

Pursuant to this, the bank will now engage with the investors for the completion of the proposed capital raise, subject to various regulatory compliances and conditions precedent as per the respective investment agreements, it added.

In July, YES Bank had announced raising equity capital worth $1.1 billion (Rs 8,900 crore) from global private equity investors Carlyle and Advent International, which will acquire 9.99 per cent stake each in the bank.

On November 30, the RBI had issued conditional approval to Carlyle and Advent International for their planned acquisition in YES Bank through subscription to its equity shares and share warrants.

The fund-raising would be conducted through a combination of $640 million (Rs 5,100 crore) in equity shares and $475 million (Rs 3,800 crore) through equity share warrants, YES Bank had said. The acquisition by the investors would add Rs 8,900 crore to the equity capital base, the private lender had said in July.