Bid for Yes Bank: The $15 billion Hinduja Group and a New York-based investor reportedly join hands

• The Hinduja Group, along with New York-based Cerberus Capital Management LP may bid for a stake in the troubled Yes Bank.
• The cash starved Yes Bank has been attempting to raise funds over the last year but has failed to do so.
• The stock of Yes Bank has already lost over 80% of its value in the last one year.

The Hinduja Group, along with New York-based Cerberus Capital Management LP may bid for a stake in the troubled Yes Bank. Officials from the two potential suitors have already consulted the Reserve Bank of India, according to a Bloomberg report.

The cash starved Yes Bank has been attempting to raise funds over the last year but has failed to do so. Earlier, Yes Bank had reported that it has received non binding expressions of interest from JC Flowers, Tilden Park, OHA and Silver Point. "Valuation has to be much lower than the current market price, we are not keen at this price, it does not correctly reflect the asset quality concerns," an investor told CNBC TV18.

The stock of Yes Bank has already lost over 80% of its value in the last one year.


YES Bank has also delayed its Q3 earnings report till March, amidst rumours of it getting new investments. Earlier in February, Yes Bank had appointed Cantor Fitzgerald, headed by Anshu Jain, for its fundraising plans.

The Hinduja Group already owns a stake in Induslnd Bank. The London-based conglomerate and the brothers behind it – Srichand, Gopichand, Prakash and Ashok – are worth $15.7 billion according to Forbes. According to reports, the Hinduja Group was also looking at bidding for the bankrupt airline Jet Airways.

Cerebrus Capital Management is an invetor in distressed assets and its portfolio is worth over $50 billion. However, in India, it is less than a year old. It is led by former Lehman Brothers executive, Indranil Ghosh, an investment banker who has cut his teeth at ICICI Bank and later went on to manage the India portfolio for Citigroup Venture Capital International.

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