Yes Bank Launches Share Sale To Raise Up To $750 Million
Yes Bank plans to raise up to $750 million via QIP; fixes floor price at Rs 1,498.95
Private sector lender Yes Bank has launched a qualified institutional placement (QIP) of equity shares to raise up to $750 million (about Rs 4,900 crore), according to a person with direct knowledge of the matter.
Of the total amount, the bank has the option to raise $100 million through a greenshoe option, the person added. A greenshoe option allows the company to sell more shares than had been planned if the demand for the issue is higher than expected.
The floor price for the QIP has been set at Rs 1,498.95 per share, Yes Bank said in a stock exchange filing. In accordance with Securities and Exchange Board of India regulations, the lender will offer a discount of not more than 5 percent to the floor price. The bank has picked Bank of America Corp. and CLSA Ltd. to arrange the share sale, Bloomberg reported earlier in the day.
On September 7, Yes Bank had attempted to raise $1 billion through a QIP at a floor price of Rs 1,371.8. It subsequently withdrew the share sale program the next day citing extreme volatility and misinterpretation of regulatory guidelines related to QIPs.
Since close of trade on September 8, Yes Bank’s share price has risen 13.2 percent to close at Rs 1,516 on the BSE.
At the end of December, Yes Bank had a capital adequacy ratio of 16.9 percent, of which Tier-1 capital stood at 12.2 percent of risk weighted assets.