Private lender Yes Bank Ltd. said its board has agreed to allot shares and warrants to The Carlyle Group and Advent International as part of its fund-raising exercise.
The bank’s board met on Tuesday to approve the allotment plan.
A total of 369.61 crore equity shares and 255.97 warrants have been allotted to the two investors on a preferential basis.
CA Basque Investments—an affiliate of Carlyle—and Verventa Holdings, which is affiliated with Advent International, will receive 184.8 crore equity shares worth Rs 13.78 each and 127.98 crore warrants at a price of Rs 14.82 each.
While the equity shares will fetch Rs 2,546 crore worth of funds for Yes Bank from each investor, each set of the share warrants are worth Rs 1,896 crore.
Both investors have each paid Rs 474 crore upfront, against the share warrants. The balance will be paid when these shares are converted to equity.
Cumulatively, the bank has raised Rs 6,040 crore worth of capital through this exercise, with an additional Rs 2,844 crore to be paid at a later date.
In July, Yes Bank announced that Carlyle and Advent were to invest Rs 8,898 crore, i.e., $1.1 billion, to pick up 10% stake each in the bank.
In the quarter ended September, Yes Bank reported a net profit of Rs 153 crore, down 32% year-on-year. It had advances of Rs 1.92 lakh crore and a deposit base of Rs 2 lakh crore. Net interest margin for the quarter improved 20 basis points sequentially to 2.6%.
Gross non-performing asset ratio for the quarter stood at 12.9%, down 50 basis points quarter-on-quarter. Net NPA ratio, too, improved to 3.6%, compared with 4.2% as of June 30.
Pursuant to the allotment of the said equity shares, the total issued and paid-up share capital of the bank has increased from Rs 5,011.3 crore to Rs 5,750.5 crore.
The bank’s board has also approved the appointment of Sunil Kaul and Shweta Jalan as additional directors. Kaul is currently managing director and financial services sector lead for Carlyle in Asia, while Jalan is managing partner and India head for Advent International. These appointments are subject to shareholder approval.