Private lender Yes Bank on Wednesday said it has received non-binding expressions of interest (EoI) from at least four "prominent investors" and the capital raising effort will lead to a delay in publishing its December quarter financial results to on or before 14 March.
"In this regard we wish to disclose that we have received non-binding expressions of interest (EOIs) from several prominent investors. These include J.C. Flowers & Co. LLC; Tilden Park Capital Management LP; OHA (UK) LLP (part of Oak Hill Advisors); Silver Point Capital," the bank said in a regulatory filing.
The lender said that it along with its financial advisors are currently in discussions with these investors on the commercial terms, including pricing.
"The bank and its management is deeply engaged with the exercise outlined above and which includes extensive work with its investment bankers, legal and accounting advisors, the investors and the independent vendor/legal due diligence commissioned for investors. Given that the current capital raising process has the bank' s fullest attention, it would like to inform the exchanges that it will publish its unaudited financial results for the quarter and nine month period ending 31 December, 2019 on or before 14 March, 2020," Yes Bank said.
However, this exceeds the 45-day period from the end of a quarter as prescribed by SEBI for disclosing financial results.
The bank is in dire need of capital and in January, the board approved raising funds of up to ₹10,000 crore in one or more tranches through a qualified institutional placement (QIP), or any other private placement of equity or debt. The bank had also rejected a proposal by Erwin Singh Braich to invest $1.2 billion. On 30 November, it had said that a number of investors evinced interest in buying Yes Bank equities worth $2 billion. The bank had also said that it was in discussions with the family office of Erwin Singh Braich/SPGP Holdings and the investors had shown an interest in investing $1.2 billion through a binding offer.
Earlier, at an extraordinary general meeting (EGM) this month, the lender also received shareholders' nod to raise up to ₹10,000 crore.