The Yes Bank board on Tuesday said that it would consider the USD 500 million investment of Citax Holdings and Citax Investment Group.
The Erwin Singh Braich-SPGP Holdings' USD 1.2 billion binding offer too continues to be under discussion the Yes Bank board said after a meeting of its board of directors to finalise and approve the proposed capital infusion which will take place through preferential allotment.
Following the meeting the board also said that Yes Bank will "continue to evaluate other potential investors to raise capital up to USD 2 billion".
The board decided that the final decision regarding allotment to Citax Holdings and Citax Investment Group will follow in the next board meeting, subject to requisite regulatory approval, the bank said in a filing to stock exchanges.
Earlier reports had quoted the bank as saying that the bank had eight investors led by Erwin Singh Braich that have evinced interest to pump USD 2 billion into the lender. The investors who have shown interest also reportedly included the Aditya Birla Family Office and Rekha Jhunjhunwala, wife of market investor Rakesh Jhunjhunwala, who have committed USD 25 million each.
Ahead of the meeting, shares of Yes Bank had declined by over 5%.
According to PTI, benchmark indices spiralled lower on Tuesday, dragged by widespread selling in bank, energy and IT stocks, as investors booked profit at higher levels amid lacklustre macro and global cues. Yes Bank was the biggest loser in the Sensex pack with 10.05% decline.
A lack of enthusiasm has been seen among investors after the bank last month declared the list of investors who have offered to invest in Yes Bank.
Investors doubt stemmed from the fact that Braich has been involved in a number of bankruptcy cases, lawsuits and failed business deals. Besides, the lack of information on Braich, who seems to steer the revival of the struggling Yes Bank, has also troubled investors off-late.
Constraints on capital had forced the private sector bank to shrink its book in the September quarter. The bank has been going through a tumult for the last one year since the RBI forced the exit of its promoter and CEO Rana Kapoor in August 2018.
His successor Ravneet Gill was forced to make the capital raise top priority because of doubtful bets taken by the bank under Kapoor.
(with inputs from agencies)
