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Rediff News  All News  » Business » YesBank ropes in 3 private equity investors

YesBank ropes in 3 private equity investors

September 17, 2003 08:24 IST

The proposed new private sector bank, YesBank, being set up by the consortium of Rabobank Netherlands, Ashok Kapur and Rana Kapoor has reached the final stages of achieving financial closure.

The promoters have roped in three private equity investors who will pick up a 25 per cent stake between them.

The three investors in the proposed bank are Chrys Capital (formerly Chrysallis Capital), New Bridge Capital and CVC International, a private equity arm of Citigroup. Chrys Capital and CVC International had earlier this year taken a 3.84 per cent stake each in UTI Bank.

Sources said the new equity investors were taking the stake in the bank at around Rs 13-15 per share, thus offering a small premium.

These investors are being issued shares worth Rs 50 crore (Rs 500 million), representing a 25 per cent stake in the bank. They are likely to get board seats.

"The entire process will be concluded next week," a source familiar with the development said.

When contacted, Rana Kapoor, said, "Due to reasons of confidentiality, I would not be able to confirm or deny the development."

Ashok Kapur and Rana Kapoor will have a 51 per cent stake in the bank, while Rabobank Netherlands will have a 20 per cent stake.

Key employees of the bank will have a 3-4 per cent stake between themselves with the remaining 25 per cent stake will be with the private equity investors.

The proposed bank had earlier run into trouble after Harkirat Singh, one of the original promoters, withdrew from the partnership.

The Reserve Bank of India had in July given the promoters a four-month extension till November 30 for setting up the bank.

The new bank will have an initial capital of Rs 200 crore (Rs 2 billion), which will be subsequently hiked to around Rs 300 crore (Rs 3 billion).

The bank has already identified a managing director and chief excutive officer. Ashok Kapur will be the non-executive chiarman of the bank while Rana Kapoor will be one of the co-promoter directors of the bank.

George Smith Alexander in Mumbai