An image of a Yes Bank hoarding. (Photograph: Dhiraj Singh / Bloomberg)

Yes Bank Launches $1 Billion QIP Issue; Shares Slump 

Private sector lender Yes Bank Ltd. has launched a share sale to raise up to $1 billion, with a floor pricing of Rs 1,371.84 per equity share.

“The bank may at its discretion offer a discount of up to 5 percent on the floor price in the QIP (Qualified Institutional Placement)”, the private lender said in a notification to the exchanges. The board of the bank had approved the fundraising by way of a special resolution on June 7.

The QIP planned by Yes Bank will be largest so far this year. While the primary markets have been active, the QIP segment has seen little activity.

According to Prime Database, a firm that provides primary and secondary market data, only six Indian firms have raised Rs 645 crore through QIP issues so far this fiscal. In fiscal 2016, 20 firms had raised Rs 19,358 crore through such share sales to institutional investors.

Yes Bank shares slumped 2.9 percent to Rs 1,364.8 as of 10:10 a.m.