Some of the bigger entities from Europe have evinced interest to buy stake in Yes Bank and talks regarding the same are at an advanced stage as per sources from investment banking who told about the development to a leading business channel. Further, these all entities are from the financial domain with huge exposure in Europe and Russia, as per sources.
Among these one of the entities has a substantial stake in a leading Europe based bank, and together they can make an investment up to $1 billion in the private lender.
"CITAX commitment of $500 million is already into the Escrow account. So, that also seems to be a real money which is coming in from a very large investor which is CITAX. So put all together, if Yes Bank manages to raise $1.5 billion and if there is an approval from the RBI at least the first step of raising the initial $1-1.5 billion will be taken care of," said the sources.
"If this happens, at least this will take care of the initial investments and then, going forward, post-February once the six months cool-off gets over they can look for a qualified institutional placement (QIP) as well. The second tranche of QIP could be possible after February. Therefore, it could be the first fundraising from the large entities if get clearance from the RBI and the second tranche could be coming in via QIP as well. So that is the plan right now."
And as for the investment in Yes Bank, RBI approval shall be required. These entities should be concrete enough for the RBI to approve their investment decision in the bank.
The talks on capital raising are at an advanced stage and possibly by January if there happens to be firm binding bids the names of these entities shall be submitted with the regulator for final approval.