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Grapevine: Yes Bank to raise $1.3 bn; Axis Mutual Fund, 2 others lead race for L&T MF
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Yes Bank, which was recently rescued by a consortium led by the State Bank of India (SBI), plans to soon launch a follow-on public offering (FPO) to raise up to Rs 10,000 crore (about $1.3 billion at current exchange rate), three people aware of the development told Mint.

One of the persons cited above said Yes Bank has approached market regulator Securities and Exchange Board of India to allow it to execute the FPO under the so-called fast-track route, which will help it to tap the market immediately. The timeline for filing the offer document also hinges on this approval from Sebi, the person added.

In March, a consortium of investors including SBI, Housing Development Finance Corp. Ltd (HDFC), ICICI Bank Ltd, Kotak Mahindra Bank Ltd, Bandhan Bank, Federal Bank and IDFC First Bank invested Rs 10,000 crore into Yes Bank.

Meanwhile, Axis Mutual Fund, IIFL Mutual Fund and ICICI Prudential Mutual Fund have emerged as the top three contenders to buy the mutual fund business of L&T Finance Holdings Ltd, three people aware of the development told The Economic Times.

Avendus Capital, Blackstone Group and ChrysCapital have also shown interest in buying up to 15% stake in L&T Mutual Fund, the persons added.

“AMCs (asset management companies) are available at low valuations now. So, the prospects of exiting investment with a relatively much higher valuation in the event of listing exists, which is attracting PE players," one of the persons said.

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