YES Bank in talks with Brookfield, BlackRock to sell 5-10% stake via QIP: Report

Industry:    2 months ago

Private sector lender YES Bank has held discussions with Brookfield and BlackRock for raising capital against 5-10 per cent equity stake via qualified institutional placement (QIP), sources told ET NOW.

The bank is also in touch with multiple private equity players for raising Rs 10,000 crore, the report said noting that due diligence by investors was yet to be completed.

Among other potential investors, YES Bank has also held discussions with Carlyle and Advent, according to the report.

The bank board had in January approved raising of Rs 10,000 crore in funds.

Brookfield and BlackRock did not offer comment to a query sent by ET NOW, nor did YES Bank respond to the queries.

Shares of YES Bank were trading 0.77 per cent lower at Rs 12.83 on BSE. The scrip has fallen nearly 9 per cent year-to-date and 13.6 per cent in the last year.

In July 2021, the bank had raised Rs 15,000 crore through a follow-on public issue, its first equity fundraising after a State Bank of India (SBI) led reconstruction plan which was implemented after RBI approval in March 2020.

The clause stipulates that SBI must hold at least a 26 per cent stake for three years. SBI is currently the largest shareholder in the bank with a 30 per cent stake as of December 31.