As a result of this sale, CA Basque no longer meets the minimum threshold needed to maintain its board nomination rights, according to the investment agreement established with YES Bank on July 29, 2022.
In accordance with the agreement, CA Basque’s ability to nominate a director to the bank’s board is terminated now that its stake has fallen below the required level.
Also Read: Yes Bank shares drop 7% ahead of board meeting to raise funds
Yesterday, Yes Bank stated that its board has sanctioned raising ₹16,000 crore through a combination of equity and debt to support business expansion.
The board approved the capital increase via the issuance of eligible equity securities through various acceptable means, ensuring that the total amount raised through these securities does not exceed ₹7,500 crore, and that it results in no more than 10% aggregate dilution (including dilution from the issuance of equity securities related to this item and the conversion of any convertible debt securities sanctioned by the board), the private bank indicated in a regulatory filing.
The board also authorized raising funds through the issuance of eligible debt securities in either Indian or foreign currency, with an upper limit of ₹8,500 crore and a total dilution of no more than 10%, it noted.
According to the filing, the board also approved modifications to the bank’s Articles of Association following the terms of the share purchase agreement dated May 9, executed by the bank, Sumitomo Mitsui Banking Corporation (SMBC), and State Bank of India (SBI), which will be subject to the approval of the Reserve Bank of India and the bank’s shareholders.
Also Read: Yes Bank shares rise 9% after Sumitomo acquires stake from SBI-led consortium of lenders
Shares of Yes Bank Ltd closed at ₹21.15, up by ₹0.30, or 1.44%, on the BSE.
