Carlyle Group Sells $173 Million Stake in India's Yes Bank

The Carlyle Group, a United States-based investment firm, has sold a 1.98% stake in Yes Bank, an Indian private sector bank, worth ₹1,441.63 crore (approximately $173 million). The sale was made through CA Basque Investments, a Carlyle Group entity, at a price of ₹24.27 per share. This transaction reduces CA Basque Investments' stake in Yes Bank from 9.11% to 7.13%.

Why this matters: The sale of a significant stake in Yes Bank by a major foreign investor like Carlyle Group highlights the ongoing challenges faced by Indian private sector banks in maintaining investor confidence. This development could have broader implications for the Indian banking sector, potentially influencing the country's economic growth and stability.

The sale, which took place on May 3, 2024, consisted of 59.4 crore shares at an average price of ₹24.27 per share. The deal value amounted to ₹1,441.63 crore, equivalent to approximately $173 million. This is not the first time the Carlyle Group has sold a stake in Yes Bank; in February 2024, it sold a 1.35% stake at ₹27.10 per share, earning ₹1,056 crore.

The Carlyle Group had initially acquired a 9.99% equity stake in Yes Bank in 2022 as part of a $1.1 billion fundraise by the lender. Carlyle had boosted its holding to 9.11% from 5.07% following the conversion of 1.28 billion warrants into shares in December 2022.

In another bulk deal on May 3, Goldman Sachs (Singapore) PTE-ODI bought 36.92 crore shares, equivalent to a 1.23% stake in Yes Bank, at an average price of ₹24.26, worth ₹895.78 crore. On the same day, Yes Bank's shares fell 1.96% to ₹24.95 on the National Stock Exchange (NSE).

TheCarlyle Group'sstake sale in Yes Bank comes as the private sector lender continues to navigate challenges in the Indian banking sector. The sale, valued at approximately $173 million, marks a significant transaction for both entities and highlights the ongoing interest of foreign investors in the Indian financial market.

Key Takeaways

• Carlyle Group sells 1.98% stake in Yes Bank for ₹1,441.63 crore ($173 million).
• Stake sale reduces Carlyle's holding in Yes Bank from 9.11% to 7.13%.
• Goldman Sachs buys 1.23% stake in Yes Bank for ₹895.78 crore.
• Yes Bank's shares fall 1.96% to ₹24.95 on National Stock Exchange (NSE).
• Carlyle Group initially acquired 9.99% stake in Yes Bank in 2022 as part of $1.1 billion fundraise.