Yes Bank Share Price Shoot Up After Carlyle and Advent Plans To  Raise Over $1 Billion

Investing Finances

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YES Bank shares jumped on Monday after the lender said it would raise $1.1 billion from two private equity investors - Carlyle and Advent International - on Friday.

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YES Bank said, it plans to raise ₹ 5,100 crore by issuing 370 crore shares to Advent and Carlyle at ₹ 13.78 each and the rest through 257 crore convertible warrants at ₹ 14.8 each.

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Upon completion of the transaction, both private equity investors will hold up to a 10 percent stake in the private sector lender.

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This capital will come as a welcome reprieve for Yes Bank as it has been seeking to raise funds over the past year.

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YES Bank's management has indicated that the new capital is likely to be deployed to support the bank's growth in line with its peers.

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YES Bank has also recently entered into a deal to set up an asset reconstruction arm which will help it move most of its bad assets into ARC, that will free up more capital for further growth.

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In recent quarters, YES Bank has shown a steady improvement in its asset quality, with the net non-performing asset ratio increasing to 4.17 percent in June from 4.53 percent in the previous quarter.

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