Global buyout major Advent International is reportedly considering a INR75bn ($1bn) investment in India’s Yes Bank to further capitalize it.
According to the Economic Times, the buyout house is conducting due diligence and the proposed investment could be through a preferential allotment.
It may also form a consortium for the acquisition, on the condition that Yes Bank’s share prices remain stable and they obtain a greenlight from relevant regulatory bodies.
Regulations in India allow non-promoters like PE players to buy up to 9.9% in banks, subject to Reserve Bank of India’s approval.
Yes Bank has a market capitalisation of 336.5bn rupees and a 10% stake would be valued at 33.6bn rupees.
It closed its second dedicated tech fundraise on $4bn in December, soaring past its $3bn initial target. It was reported in October that the firm was seeking up to $25bn for a mammoth new fund raise.
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