New Delhi: The Hinduja Group has also joined the race to take a stake in Yes Bank. Sources have said that the Hinduja Group is part of the consortium that is investing in Yes Bank. Hinduja Group has joined hands with Cerberus and JC Flowers to buy up to 10 per cent stake in Yes Bank.
On the condition of anonymity, the source said that IndusInd Bank, owned by Hinduja Group, is not involved in this deal.
According to sources, the investors have talked to the banking regulator RBI and asked about the pricing of the deal. The source said, “The valuation should be much lower than the current market price. We do not want to take this stake at the current price. This is a higher current market price given the bank’s asset quality concerns.”
Hinduja Group is exploring investment opportunities through its group entity IIHL (IndusInd International Holdings Limited). The group is owned by IndusInd Bank and hence RBI will not allow it to take more than 10% stake.
Another source said that IndusInd Bank is not involved in the deal as it is the group’s financial investment arm. Yes Bank recently told the stock exchange that JC Flowers, Tilden Park, OHA and Silver Point have expressed non-binding expressions. Yes Bank is in dire need of funds.
