Yes Bank is likely to offer a board seat to the investor who has offered to infuse $1.2 billion into the private sector bank.

Voting rights for the new investor will be capped at 15 per cent, and the lender does not anticipate an open offer to be triggered following the capital infusion, Ravneet Singh Gill, CEO and MD of Yes Bank, said.

Gill was speaking to analysts at a concall after the lender declared the results for the second quarter ended September 30.

Yes Bank had earlier announced that it had received a binding offer from a foreign investor to infuse $1.2 billion through a fresh issue of equity shares, subject to regulatory approvals as well as approvals from the board and shareholders.

The bank had also disclosed that it was in advanced discussions with other global and domestic investors.

On the price at which the investment will be made, the Yes Bank CEO said it will be either at the two-week average share price or as mutually agreed among the parties.

Gill added that the binding offer is valid till November 30.

“The board has decided to have the capital raising committee go through the offers and decide what is the optimal capital mix which serves the best interest of the bank. We expect the capital raising process to get completed in a reasonably short time and, ideally speaking, we would want to get the money in before the year is out,” he added.

Apart from the $1.2-billion offer which has come with the backing of a “large, long standing US financial institution”, Yes Bank has received eight bids from some of the top global private equity firms and domestic funds, aggregating to $1.5 billion, Gill said.

“There were three constituencies of investors that we were looking at. One was the private equity, second was family offices and third was more strategic,” Gill added while pointing out that in family offices the lender has received four bids totalling around $300 million.

“We have support from two of India’s most sophisticated financial investors they are very large and have a strong pedigree and equally we have support from two of India’s finest entrepreneurs. Looking at these four, the demand over there could be in the vicinity of $300 million,” the Yes Bank CEO & MD disclosed.

Thus, in all, Yes Bank has received offers worth $3 billion.

The Yes Bank top management further said the voting rights of the new investor will be capped at 15 per cent even as they felt that the capital raising will not trigger an open offer.

“In some cases the investor has talked about a board seat, and that is something which we will consider positively. Actually, we will welcome that. I think it will strengthen the board,” Gill said.