Yes Bank Sets 55% Discount for $2 Billion Share Offering

Yes Bank Ltd. set a large discount in the price range for its $2 billion public offering scheduled for next week.

The Mumbai-based lender plans to sell the shares at 12 rupees to 13 rupees apiece, a filing showed. That’s a discount of as much as 55% to Thursday’s close.

Yes Bank, which was bailed out earlier this year, is the latest Indian lender to announce capital raising plans, to boost buffers as the pandemic threatens to increase bad loans. Kotak Mahindra Bank Ltd. raised almost $1 billion in late May selling shares at a discount of just over 1%.

Yes Bank has received commitments for about half the $2 billion it is seeking from anchor investors including Tilden Park Capital, state insurer Life Insurance Corp. and State Bank of India and its subsidiaries, according to people familiar with the matter, who asked not to be identified as the matter is confidential.

State Bank of India has already announced plans to invest up to 17.6 billion rupees in the share issue. A group of eight Indian lenders led by SBI rescued Yes Bank in March with an infusion of 100 billion rupees.

Representatives for LIC and SBI didn’t immediately respond to emails seeking comment. Tilden Park Capital didn’t respond to an email sent out of U.S. office hours.

A minimum bid lot will be one thousand equity shares, Yes Bank said in the filing. The equity issue is open from July 15 to July 17.

The bank’s shares fell as much as 9.2% in Mumbai trading on Friday.

©2020 Bloomberg L.P.

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