Mumbai– Yes Bank on Friday rejected mysterious investor Erwin Singh Braich’s $1.2 billion investment offer but said that it will raise Rs 10,000 crore by issuing securities. The bank on Friday also said it will take up Citax Holdings, and Citax Investment Group’s investment offers in the next board meeting.
The private lender said that it received an updated proposal from Braich but the “board has decided not to proceed with the offer” after last month postponing a decision on his binding offer of $1.2 billion — 60 per cent of the total capital the bank aimed to raise.
A lack of enthusiasm was seen among investors after the bank last month declared the list of prospective investors. Investors’ doubts over Braich stemmed from the fact that he has been involved in a number of bankruptcy, lawsuits and failed business deals.
IANS had also reported last month that Braich and his Hong-Kong-based SPGP fund was not even able to pay up Rs 2 crore for earnest money in the Reid & Taylor bid under NCLT earlier this year. The SPGP has also been involved in a few lawsuits, including one against the Canadian government.
Yes Bank, however, after its 5 hour long board meet on Friday, said that it is willing to “favourably consider the offer of $500 Million of CitaxHoldings and Citax Investment Group and the final decision regarding allotment to follow in the next board meeting..” as “the relevant conditions precedent could not be completed as on date”.
In a regulatory filing, Yes Bank said that it will raise funds upto Rs 10,000 crore, in one or more tranches “on such terms and conditions as it may deem fit, by way of issuance of securities including but not limited through Qualified Institutions Placement (QIP) or Global Depository Receipts (GDRs) among other means”. (IANS)