Discovery Capital, UK-based hedge fund Marshall Wace and others have joined buyout firms Carlyle and Farallon in negotiations for a stake in Yes Bank, which is looking to raise more than $1.3 billion in fresh equity to shore up its capital base, two people familiar with the matter said.
These investors, along with domestic investors such as Aditya Birla Mutual fund and HDFC Mutual Fund, are keen to have a share of the pie in Yes Bank which is cleaning up bad loans and raising corporate governance standards, said the people who did not want to be identified.
Investment interest from these portfolio investors comes over and above a binding bid from a North American family office for a $1.2-billion stake in the bank. SSG Capital has also expressed interest. The stake sale would help chief executive Ravneet Gill negotiate a holding structure that would help him navigate regulatory restrictions on single entity ownership in a bank.
Source: Economic Times