New Delhi, Mar 13 :
The board of ICICI Bank on March 13 has approved an investment of Rs 1,000 crore in Yes Bank via equity route.
ICICI Bank will acquire 100 crore equity shares of Yes Bank at Rs 10 per share, including a premium of Rs 8 per share.
This investment is likely to result in ICICI Bank holding in excess of 5.0 percent shareholding in Yes Bank, with the final shareholding to be determined based on the final Scheme of Reconstruction and share issuance thereunder, ICICI Bank said in a release to the stock exchange.
“We wish to inform you that the Board at its Meeting held on March 12, 2020, accorded approval for an equity investment of up to~ 10.00 billion in equity shares of Yes Bank Limited, comprising up to 1.00 billion equity shares at a price of~ 10.0 per share, under the proposed Scheme of Reconstruction of Yes Bank Limited under the Banking Regulation Act, 1949, subject to regulatory and government approval,” the bank said in the release. The announcement of this investment from ICICI Bank comes alongside the approval of Yes Bank’s restructuring scheme by the Union Cabinet. Announcing the Cabinet approval to the scheme, Finance Minister Nirmala Sitharaman said, the decision keeps at its core the aim to safeguard depositors’ interest and ensure a stable financial banking system. She said the authorised capital of Yes Bank is being raised to Rs 6,200 crore from Rs 1,100 crore in order to accommodate immediate and subsequent capital raising requirement. In a relief to depositors, the FM also announced that the moratorium on withdrawals will be lifted on the third day of the notification of the scheme. She, however, did not specify when it will be notified.
On March 12, SBI had announced an investment of Rs 7,250 crore in Yes Bank through the acquisition of 725 crore shares at Rs 10 each. SBI’s shareholding in Yes Bank after reconstruction will be within the 49 percent limit, SBI said in a statement to stock exchanges.
