Yes Bank stake buy | Jhunjhunwala, Damani, PremjiInvest, PEs, HDFC, Kotak Bank & ICICI in fray: Report

Rakesh Jhunjhunwala

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

The Reserve Bank of India (RBI) has reportedly tapped market heavyweights Rakesh Jhunjhunwala, DMart (Avenue Supermarts)
owner Radhakishan Damani and PremjiInvest to join the Yes Bank rescue consortium.

Jhunjhunwala and Damani are among the many private investors tapped for the Yes Bank recapitalisation plan, The Times of India reported. While The Economic Times added that PremjiInvest is also on the rolls.

Moneycontrol could not independently verify the reports.

The central bank is looking for the maximum number of investors are part of the consortium to ensure that no single entity/individual (other than the State Bank of India) holds more than 5 percent stake in the troubled bank, TOI reported.

The government is keen on involving private equity (PE) to keep the ‘nationalisation’ tag away from the Yes Bank rescue as most public sector banks (PSBs) are in capital conservation mode.

However, global P/E players have laid out important conditions, reports Business Standard. JC Flowers, Cerberus Capital, Tiden Park Capital and Blackstone want SBI to completely write-down Yes Bank’s Tier II bonds as part of the liability clean up.

As per the report, they want SBI to identify all stressed loan accounts and sell them to an asset reconstruction company (ARC). PEs are willing to invest up to $1.7 billion in Yes Bank but on similar terms that were offered to SBI, i.e. at Rs 10 per share.

Rescue planThe RBI proposed a revival plan for Yes Bank that will include initial capital infusion and funding lines to prevent a relapse once the 30-day moratorium imposed on March 5 is lifted. As per the plan, investors in additional Tier I (AT1) bonds have agreed to write-off 80 percent of their investment and convert 20 percent to equity, the TOI report said.

The central bank is expected to announce finalised commitments from SBI and other banks such as HDFC Group, Kotak Mahindra Bank and ICICI Group – who are in talks for equity investment - as soon as the banks confirm their investment.

As per the plan, once the announcement is made, banks will infuse Rs 20,000 crore as equity on day 2; public sector banks will invest around Rs 30,000 crore in certificates of deposits (CDs) of the bank on day 3; and the moratorium will be lifted on day 4, the TOI report stated.

The AT1 bondholders have Rs 8,500 crore investment Yes Bank, which will be converted into 170 crore equity shares with a face value Rs 10. This means an investment of Rs 1,700 crore with a three-year lock-in. The one sticky point would come from mutual fund houses (MFs) that hold AT1 bonds in pure debt funds as the Securities and Exchange Board of India (SEBI) restricts equity investments by funds.