Private sector lender, YES Bank Ltd, on Wednesday (June 4) said that CA Basque Investments, the Mauritius-based special purpose vehicle owned by Carlyle Group, has offloaded 2.62% of its shareholding in the bank, reducing its total stake to 4.22%.
Following the sale, CA Basque no longer holds the minimum threshold required to retain its board nomination rights, as per the terms of the investment agreement signed with YES Bank on July 29, 2022.
In line with the agreement, CA Basque’s right to nominate a director on the bank’s board ceases now that its stake has dropped below the prescribed level.
Also Read: Yes Bank shares fall 7% ahead of board meeting to raise funds
Yesterday, Yes Bank said its board has approved raising of Rs 16,000 crore through a mix of equity and debt to fund business growth.
The board approved raising of funds by way of issuance of eligible equity securities through various permissible means, provided that the aggregate amount to be raised by issuance of such securities would not exceed ₹7,500 crore and would not result in an aggregate dilution of more than 10% (including dilution on account of issuance of equity securities in terms of this item and conversion of any convertible debt securities approved by the board), the private bank said in a regulatory filing.
The board also gave its nod to raising funds by way of issuance of eligible debt securities in Indian or foreign currency, provided that the aggregate amount to be raised by issuance of such securities would not exceed Rs 8,500 crore and would not result in an aggregate dilution of more than 10%, it said.
According to the filing, the board also approved amendments to the Articles of Association of the bank pursuant to the terms of the share purchase agreement dated May 9 executed by and amongst the bank, Sumitomo Mitsui Banking Corporation (SMBC) and State Bank of India (SBI), which would be subject to approval of the Reserve Bank of India and shareholders of the bank.
Also Read: Yes Bank shares surge 9% after Sumitomo buys stake from SBI-led consortium of lenders
Shares of Yes Bank Ltd ended at ₹21.15, up by ₹0.30, or 1.44%, on the BSE.
Following the sale, CA Basque no longer holds the minimum threshold required to retain its board nomination rights, as per the terms of the investment agreement signed with YES Bank on July 29, 2022.
In line with the agreement, CA Basque’s right to nominate a director on the bank’s board ceases now that its stake has dropped below the prescribed level.
Also Read: Yes Bank shares fall 7% ahead of board meeting to raise funds
Yesterday, Yes Bank said its board has approved raising of Rs 16,000 crore through a mix of equity and debt to fund business growth.
The board approved raising of funds by way of issuance of eligible equity securities through various permissible means, provided that the aggregate amount to be raised by issuance of such securities would not exceed ₹7,500 crore and would not result in an aggregate dilution of more than 10% (including dilution on account of issuance of equity securities in terms of this item and conversion of any convertible debt securities approved by the board), the private bank said in a regulatory filing.
The board also gave its nod to raising funds by way of issuance of eligible debt securities in Indian or foreign currency, provided that the aggregate amount to be raised by issuance of such securities would not exceed Rs 8,500 crore and would not result in an aggregate dilution of more than 10%, it said.
According to the filing, the board also approved amendments to the Articles of Association of the bank pursuant to the terms of the share purchase agreement dated May 9 executed by and amongst the bank, Sumitomo Mitsui Banking Corporation (SMBC) and State Bank of India (SBI), which would be subject to approval of the Reserve Bank of India and shareholders of the bank.
Also Read: Yes Bank shares surge 9% after Sumitomo buys stake from SBI-led consortium of lenders
Shares of Yes Bank Ltd ended at ₹21.15, up by ₹0.30, or 1.44%, on the BSE.
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