Yes Bank Ltd said on Thursday it has received a binding offer from a global investor to inject as much as $1.2 billion (around Rs 8,520 crore) into the private-sector lender.
The planned capital infusion will be through a fresh issue of shares and is subject to regulatory approvals, the bank said in a stock-exchange filing.
The lender added that it remains “firmly on course” to raising growth capital and that it continues to be in advanced talks with other global and domestic investors.
The bank didn’t disclose the name of the investor. However, CNBC-TV18 named Hong Kong-based SPGP Holdings as the potential investor.
Yes Bank is likely to study the offer at its board meeting on Friday.
Shares of Yes Bank jumped as much as 35% after the announcement, before paring some gains. The shares ended 24% higher at Rs 70.45 apiece on the BSE.
Yes Bank had lost nearly 90% of its market value from April to early October due to concerns related to rising bad loans and a capital crunch. But it has recouped some of the losses, with the shares more than doubling over the past month. The shares are still down 75% from the one-year high of Rs 285.90 touched in April.
The bank's chief executive officer and managing director, Ravneet Gill, has been trying to assuage investors' concerns.
Last month, Gill told Reuters that the private-sector lender is close to signing a deal to sell a minority stake to a global technology company, without naming anyone.
Gill had also said that the bank was in talks with several private equity firms, strategic investors and family offices to raise additional capital.
Previously, media reports had suggested that global private equity players TPG, Carlyle and Farallon Capital were among those seeking to buy a stake in Yes Bank.