India’s Yes Bank has received a binding offer of $1.2bn financing from an unnamed global investor as it seeks to improve its capital flow.
In a regulatory filing, the private sector lender said that the offer proposes the investment through fresh issuance of equity shares.
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News channel CNBC TV18, citing sources familiar with the matter, named Hong Kong-based SPGP Holdings as the investor.
The deal, subject to regulatory nod as well as bank board and shareholder approvals, is expected to reduce the shareholding of Yes Bank co-founder Rana Kapoor.
Yes Bank continues to negotiate with other investors, the regulatory filing added.
The board of the bank is expected to assess all proposals on a meeting scheduled this week.
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By GlobalDataThe move comes a month after it was reported that Yes Bank may sell a minority stake to local payments firm Paytm to raise money.
Later in the month, the bank confirmed through stock exchange filing that it is on course to raise growth capital and has received strong interest from several investors.
The new capital is expected to bolster Mumbai-headquartered lender’s capital portfolio and support its growth.
In August, it raised $275m through a qualified institutional placement (QIP) to improve its common equity tier-1 ratio.
According to its website, Yes Bank is the fourth largest private sector bank in India. It has a pan-India presence operating more than 1,000 branches and 1,800 ATMs.
