ICICI Bank announces to invest Rs 1,000 cr in Yes Bank via equity
Mumbai/UNI: Largest private sector lender ICICI Bank on Friday said that its boards of directors in a meeting held on March 12 has approved an investment of Rs 1,000 crore in Yes Bank via equity route.
ICICI Bank will acquire 100 crore equity shares of Yes Bank at Rs 10 per share, including a premium of Rs 8 per share.
This investment is likely to result in ICICI Bank holding in excess of 5.0 percent shareholding in Yes Bank, with the final shareholding to be determined based on the final Scheme of Reconstruction and share issuance there under, ICICI Bank said in a filing with BSE.
The announcement of this investment from ICICI Bank comes alongside the approval of Yes Bank's restructuring scheme by the Union Cabinet.
Announcing the Cabinet approval to the scheme, Finance Minister Nirmala Sitharaman said, the decision keeps at its core the aim to safeguard depositors' interest and ensure a stable financial banking system.
She said the authorised capital of Yes Bank is being raised to Rs 6,200 crore from Rs 1,100 crore in order to accommodate immediate and subsequent capital raising requirement.
The FM also announced that the moratorium on withdrawals will be lifted on the third day of the notification of the scheme.
She, however, did not specify when it will be notified.
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