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Wall Street Fund Tilden Park pumps Rs 2,700 cr into Yes Bank FPO

Mumbai, July 14, 2020: Tilden Park Capital Management LP, one among the most reputed and smarter funds on Wall Street, has launched its foray into India by participating in the YES Bank Anchor Book, investing over Rs 2,700 crs by subscribing to approx. 9.9% of the post issue capital.

Triden Park had received special permission from the RBI to invest up to 9.99% of post equity capital of YES Bank via the anchor book in the YES Bank FPO. Normally no Foreign Investor can invest more than 4.99% individually.

The bank has raised Rs 4,500 cr in anchor allotment at Rs 12 per share from investors - US based alternative asset manager, Tilden Park Capital; Singapore based fund management company, Amansa Capital and UK based Fund management company Jupiter Funds. The other investors who have received firm allotment in the anchor book are Elara Capital, RBL Bank, Hinduja Group’s Leyland Finance, HDFC Life and ICICI Prudential.

Tilden Park, an alternative asset manager headquartered in New York, has been an active investor in U.S. and non-U.S. banks for the past several years and invests in equity assets where they believe they can leverage their expertise as distressed credit investors. Their proposed investment in YES Bank comprises a sizeable chunk of their total AUM, reflecting Tilden Park’s high conviction and commitment towards the proposed investment. 

Tilden Park was founded by Josh Birnbaum and Jeremy Primer, both, graduates from Wharton and Harvard respectively. Both have an overall experience of 20+ years each, in financial firms such as Goldman Sachs & Morgan Stanley, post which they established Tilden Park. They are experts in financial markets & distressed credit. 

Yes Bank, the full service commercial bank on July 13, 2020 announced its Further Public Offering to raise Rs. 15,000 cr from the market to ensure adequate capital to support its growth and expansion, including enhancing its solvency, capital adequacy ratio, and evolving regulatory requirements.

The issue will open for subscription on Wednesday, July 15, 2020 and close on Friday, July 18, 2020, with a price band of Rs 12 -  Rs 13 per Equity Share of face value of Rs. 2 each.

According to the RHP filed, since its reconstruction scheme, the digital banking focused payments market leader in Immediate Payment Service (IMPS), Payments to Merchants UPI, AePS transactions looks to augment its deposit base and liquidity buffers, optimize operating costs, build a stronger governance and underwriting framework and focus on stress assets resolution over the next 6 -12 months.

Book Running Lead Managers appointed to the issue are Kotak Mahindra Capital Company Limited, SBI Capital Markets Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited, DSP Merrill Lynch Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited and YES Securities (India) Limited

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