PE firm Advent eyeing $1 billion investment in India’s Yes Bank – Economic Times

The logo of Yes Bank is pictured on the facade of its headquarters in Mumbai
FILE PHOTO: The logo of Yes Bank is pictured on the facade of its headquarters in Mumbai, India January 17, 2018. Picture taken January 17, 2018. REUTERS/Danish Siddiqui

February 4, 2022

BENGALURU (Reuters) – Private equity group Advent International is evaluating a 75 billion rupee ($1.00 billion) investment in India’s Yes Bank to further capitalise it, the Economic Times daily reported on Friday, sending shares of the private-sector lender by up to 3%.

Advent is conducting due diligence and may form a consortium, the report said, citing sources.

A 10% stake in the bank would be valued at 33.64 billion rupees, the report said, adding that the proposed investment could be through a preferential allotment.

The talks are ongoing and may collapse if the share price surges or if there is any regulatory roadblock, the report said.

Advent and Yes Bank did not immediately respond to Reuters requests for comments.

The Reserve Bank of India in 2020 had taken control of Yes Bank, after the bad debt-laden lender had failed to raise the capital needed to stay above mandated regulatory requirements.

Later, State Bank of India and several private lenders stepped in to infuse money into the lender and bail it out to address systemic risk concerns.

($1 = 74.7200 Indian rupees)

(Reporting by Nallur Sethuraman in Bengaluru; Editing by Subhranshu Sahu)