Topping the list at $1.2 billion is SPGP Holdings backed by Canadian family office of Erwin Singh Braich — Canada’s first Sikh billionaire. It is not clear whether Yes Bank has received any in-principle nod from the RBI for SPGP Holdings. SPGP was in the news in India for failing to make a Rs 2-crore earnest money deposit after it put in a bid for bankrupt apparel company Reid and Taylor.
Others who have shown interest include another family office Citax Holdings and Citax Investment Group, which has proposed to invest $500 million. Of the rest, $120 million is expected to come from an unnamed US fund house, $50 million each from Discovery Capital and GMR Group, $30 million from Ward Ferry and $25 million each from Aditya Birla Family Office and Rekha Jhunjhunwala.
“The board has today taken a decision to raise up to $2 billion through preferential allotment at a price in accordance with chapter V of the Sebi (Issue of Capital and Disclosure Requirements) Regulations, 2018 (higher of two weeks or 26 weeks average price). None of the investors will be allotted equity shares such that their holding exceeds 25% of the share capital of the bank,” Yes Bank said in a statement to the exchange.
It added the board will meet again on December 10 to finalise and approve details of the preferential allotment, after which it will be put to shareholders’ vote. Given that the bank’s m-cap is Rs 17,419 crore, the equity infusion of Rs 14,350 crore will cause dilution of 45% in favour of the new investors.