Mortgage lender HDFC Ltd will invest Rs 1,000 crore into cash-strapped Yes Bank for an equity stake as per the RBI-mandated reconstruction scheme for the troubled lender.
“The Corporation is investing in 100 crore equity shares of Rs 2 each of Yes Bank for a consideration of Rs 10 per share (including Rs 8 premium) for an aggregate consideration of Rs 1,000 crore,” HDFC Ltd said in a regulatory filing.
This investment is likely to result in the Corporation (Housing Development Finance Corporation) 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, it said.
As per the Scheme of Reconstruction, 75 per cent of the total investment by the Corporation would be locked in for three years.