After ICICI Bank announcing ₹1,000 crore investment in the crisis-ridden Yes Bank, Axis Bank on Friday announced investment of ₹600 crore at ₹10 per share.
“This is to inform you that the Board of Directors of Axis Bank Ltd at its meeting held today has accorded approval to invest a sum of up to Rs. 600 crore (Rupees six hundred crore only) for acquiring up to 60 crore equity shares of Rs. 2 each (Rupees two only) of Yes Bank Limited, for cash, at a premium of Rs. 8 (Rupees eight only) per equity share, under the proposed Scheme of Reconstruction of Yes Bank Limited under the Banking Regulation Act, 1949,” Axis Bank said in a statement issued to the exchanges.
HDFC too announced investment of ₹1,000 crore by investing in 100 crore equity shares for a consideration of ₹10 per share (including ₹8 premium.
“The investment is likely to result in HDFC holding in excess of 5% shareholding in Yes Bank, with the final shareholding to be determined based on the final Scheme of Reconstruction and share issuance thereunder,” the company stated in its stock exchange filing. Meanwhile, Kotak Mahindra Bank will invest ₹500 crore in the debt-ridden Yes Bank.
ICICI Bank will acquire 100 crore equity shares of Yes Bank at ₹10 per share, including a premium of ₹8 per share.
“This investment is likely to result in ICICI Bank holding in excess of 5 per cent shareholding in Yes Bank, with the final shareholding to be determined based on the final Scheme of Reconstruction and share issuance thereunder,” ICICI Bank said in a statement.
The announcement came as the Union Cabinet approved Yes Bank’s restructuring scheme to safeguard depositors’ interest and ensure a stable financial banking system.
A day earlier, State Bank of India (SBI) had announced an investment of ₹7,250 crore in Yes Bank through the acquisition of 725 crore shares at ₹10 each.