India’s Yes Bank eyes tapping advisers for $655m fundraise

Photo: Reuters

Following its mid-March rescue by a clutch of public and private sector banks, Yes Bank Ltd is planning a new fund raise of at least 5,000 crore and has begun talks to appoint investment banks for the same, three people aware of the matter said.

On 13 March, the government had approved a rescue plan for Yes Bank led by State Bank of India, India’s largest lender. Under the plan, investors including SBI, Housing Development Finance Corp., ICICI Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank and IDFC First Bank, invested a combined 10,000 crore into Yes Bank. SBI led the rescue with a 6,050 crore infusion and currently holds a 48.2% stake in the bank.

Earlier this month, Yes Bank issued a request for proposal (RFP) seeking advisors for another round of capital infusion, which could see the bank raise at least 5,000 crore, said the first person, requesting anonymity.

“They are in conversations with a few investment banks including Bank of America, Citi, ICICI Securities, Axis Capital. The formal appointment of advisors will happen over the next few weeks. The bank has passed a resolution to raise anywhere up to 15,000 crore in fresh equity. So, depending on the market conditions and feedback from advisors, it could end up raising more than 5,000 crore,” he added.

On 26 March, the bank’s new board had increased its fundraising limit to 15,000 crore, from the 10,000 crore its previous board had approved. The new round of fundraising will see the lender tap the markets either through a rights issue or a qualified institutional placement (QIP), said the second person, also requesting anonymity.

“Clearly, the idea is to bring in new institutional investors into the bank with this additional fundraising. Even if they go for a rights issue, the existing investors who came to rescue the bank are expected to give up part or all of their share entitlement under the rights issue in favour of new investors,” he added.

This article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.