New Delhi: The board of private lender Yes Bank is willing to favourably consider the offer of USD 500 million investment of Citax Holdings and Citax Investment Group, the bank said on Tuesday.
The USD 1.2 billion binding offer of Erwin Singh Braich/SPGP Holdings continues to be under the board’s consideration, the bank said in a filing to stock exchanges.
The board of Yes Bank met on Tuesday to consider the proposals.
The board decided that the final decision regarding allotment to Citax Holdings and Citax Investment Group will follow in the next board meeting, subject to requisite regulatory approval, the filing said.
“The binding offer of USD 1.2 billion submitted by Erwin Singh Braich/SPGP Holdings continues to be under discussion,” it said.
Yes Bank further said that it will continue to evaluate other potential investors to raise capital up to USD 2 billion.
In late November, the lender had given the list of potential investors, including the two named above, who were willing to put money in the bank.
Constraints on capital had forced the private sector bank to shrink its book in the September quarter. The bank has been going through a tumult for the last one year since the RBI forced the exit of its promoter and CEO Rana Kapoor in August 2018.
His successor Ravneet Gill was forced to make the capital raise top priority because of doubtful bets taken by the bank under Kapoor.
Meanwhile, the bank’s shares on Tuesday fell over 10 per cent amid reports about difficulty being faced by the lender over a USD 2-billion fundraising plan.
The stock dived 10.05 per cent to end at Rs 50.55 on the BSE. During the day, it plunged 12.27 per cent to Rs 50.55.
On the National Stock Exchange (NSE), the company’s shares tumbled 10.4 per cent to close at Rs 50.40 apiece. During the day, the stock plummeted 13.68 per cent on the NSE.
In terms of the equity volume, 2.29 crore shares of the company were traded on the BSE and over 34.5 crore shares changed hands on the NSE during the day.
According to reports, the bank was likely to reject the offer of the proposed capital infusion.
However, the lender after the market hours said it shall continue to evaluate other potential investors to raise capital up to USD 2 billion.
“The board is willing to favourably consider the offer of USD 500 million of Citax Holdings and Citax Investment Group and the final decision regarding allotment to follow in the next board meeting, subject to requisite regulatory approval(s),” it said in a regulatory filling.
The binding offer of USD 1.2 billion submitted by Erwin Singh Braich / SPGP Holdings continues to be under discussion, it further added
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Source: News18