INDIA BUSINESS WORLD - March 16th - March 31st - 2008
HSBC ARM HIKES STAKE IN YES BANK TO 4.88%
HSBC’S financial investment arm, HSBC Financial Services (Middle East), has hiked its stake in private sector Yes Bank to 4.88% from 0.89%.
Yes Bank managing director and CEO Rana Kapoor said, “This is through a secondary market transaction. HSBC Financial Services (Middle East) has been buying Yes Bank shares since the third week of January 2008.
However, the official spokesperson of HSBC said, “We cannot comment on this transaction. There are several entities in which HSBC has invested. It could be for proprietary purposes or even on behalf of a client.”
Earlier this month, Mr Kapoor had said the bank is in talks with a few MNC banks apart from private equity arms. In December 2007, Global Orients, a Singapore-based financial institution led by Richard Chandler, picked up 4.99% in Yes Bank for Rs 331 crore. Yes Bank plans to raise up to Rs 1,100 crore in 2008-09, through a combination of debt and equity.
The HSBC Group had attempted to pick up a strategic stake in Axis Bank, but was forced to dilute its holding as it did not receive RBI permission for a higher stake. The group now holds 4.96% in Axis Bank. While the bank would look at raising anywhere between $150-170 million through a qualified institutional or private placement between April and June, the balance amount would be raised through multiple tranches in the debt market by September.
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