Yes Bank: Private equity group Carlyle is planning to invest Rs 3,750-4,500 crore ($50-60 million) in India’s private sector Yes Bank. The Economic Times has given this information quoting sources. Advent International is also planning to invest in this deal along with Carlyle.
Yes Bank is in talks with private equity investors to raise Rs 7,500-11,250 crore ($1-1.5 billion) as growth capital to strengthen its balance sheet. . Even before this, Yes Bank has made efforts to raise capital.
Eight Capital backed out of buying Yes Bank’s bad loan
About a month ago, investment firm Eight Capital backed out of its plan to buy the bad loans of Yes Bank. In fact, Eight Capital has decided to terminate its partnership with New York-headquartered private equity firm JC Flowers Group and London-headquartered Emso Asset Management. Together, the three had formed a joint venture firm, JC Flowers ARC, which had bid to buy Yes Bank’s bad loans valued at over Rs 54,000 crore. However, there was no consensus in Eight Capital regarding the valuation of bad loans, due to which it has decided to distance itself from this partnership.
Eight Capital, which held a 35 per cent stake in Mumbai-headquartered JC Flowers Asset Reconstruction Company (JC Flowers ARC), has decided to sell its entire stake in the firm. While JC Flowers holds 50 per cent stake in the firm and Amso Asset Management holds 15 per cent.
Yes Bank was in trouble two years ago
Significantly, Yes Bank was in big trouble two years ago. At that time, Yes Bank was put on the moratorium by the Reserve Bank of India (RBI) and its depositors had a withdrawal limit of Rs 50,000. Within the next few days, RBI had dissolved the board of directors of Yes Bank and directed the formation of a new board under the supervision of SBI. Also, Rana Kapoor, the founder of Yes Bank, who resigned from his post in January 2019, was arrested.
Since then, Yes Bank has rescued itself and now its financial condition seems to be coming back on track, but its founder and the troubles of Rana Kapoor, who is in jail on charges of money laundering with a scam of crores of rupees are not decreasing.
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