IDFC, Federal & Bandhan banks to invest in Yes Bank
Yes Bank Reconstruction Scheme 2020, after being approved by the central government, came into enforcement on March 13, 2020. With this, IDFC became the first bank to make an equity investment in Yes Bank.
In a BSE filing, the infrastructure finance & investment banking company said that its duly authorised committee of the board of directors in the meeting held on March 14, 2020, has given an approval for equity investment of Rs 250 crore consisting of around 25 crore equity shares. The company further added that 25 crore equity shares will be at a price of Rs 10 each with a face value of Rs 2 each.
Meanwhile, Federal Bank has also issued an equity commitment letter to invest Rs 300 crore under the same scheme for a subscription of 30 crore equity shares of Yes Bank at a price of Rs 10 per equity share.
Kolkata-headquartered Bandhan Bank would also invest Rs 300 crore for acquiring up to 30 crore equity shares of Rs 2 each for cash, with a premium of Rs 8 per equity share.
The banks have been accorded approval by Reserve Bank of India (RBI) under Section 45 of Banking Regulation Act, 1949 for the proposed scheme-Reconstruction of Yes Bank Limited. It will be subject to regulatory and government approvals, if any.
At 12.22 pm on Monday, the stock of Yes Bank is trading at Rs 36.55, up by 43.05 per cent against its previous close of Rs 25.55 on BSE.