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Yes Bank yet to take final call on Canadian investor Braich’s $1.2 bn offer
Photo Credit: VCCircle

Private-sector lender Yes Bank said on Tuesday it hasn’t yet decided on accepting a $1.2 billion investment offer from Canada’s Erwin Singh Braich and Hong Kong-based SPGP Holdings as part of a planned $2 billion fundraise.

The binding offer submitted by Braich and SPGP Holdings continues to be “under discussion”, the bank said in a stock-exchange filing after a board meeting.

But the bank said it is “willing to favourably consider” the $500 million offer made by London-based Citax Holdings and Citax Investment Group.

The bank, which is struggling to replenish its equity capital, said it will take the final decision regarding allotment to Citax in the next board meeting. It didn’t specify the date of the meeting.

The bank also said it will continue to evaluate other potential investors to raise up to $2 billion.

The board meeting comes after the Ravneet Gill-led bank said on November 29 that a number of investors had evinced interest to invest a total of $2 billion through a preferential allotment of shares. 

However, Bloomberg News reported on Monday that Yes Bank's board was likely to reject Braich’s offer amid concerns surrounding his involvement in several lawsuits, bankruptcy cases and unsuccessful business deals.

Moreover, doubts over key foreign investors have triggered concerns that the Reserve Bank of India might not allow them to take ownership stakes in the lender. The private-sector bank would prefer to have institutions rather than individual investors involved in its fundraising, The Times of India reported.

Other investors that were part of the planned $2 billion fundraise included Aditya Birla Family Office and Rekha Jhunjhunwala, wife of stock market investor Rakesh Jhunjhunwala, who committed $25 million each.

Ahead of the board meeting on Tuesday, Yes Bank's shares tumbled by over 10% to close at Rs 50.40 per share. It has lost nearly 70% of its market value this year due to concerns related to rising bad loans and a capital crunch. 

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