Media reports indicate that YES Bank may raise capital by issuing shares through qualified institutional placement (QIP) or any other route in order to fund its expansion plan.
The company may also consider Global Depository Receipts, American Depositary Receipts, follow-on public issue or by any other appropriate mode as decided by the Capital Raising Committee, the bank informed the Bombay Stock Exchange on April 17.
The board of directors of the bank approved raising as much as $500 million in tranches. After securing approval from the board of directors and shareholders at the AGM for the capital-raising plans, the bank recently got approvals from the Cabinet Committee on Economic Affairs, Government of India, Rana Kapoor, MD and CEO of the bank said.
The exact timing, pricing and quantum of capital raising will be finalised based on market conditions as the bank continues to maintain comfortable levels of capital, Kapoor said.
Some media reports indicate that the bank may sell shares to two private equity investors to raise about $300 million.
The bank, which is the youngest among Indian lenders, has a market capitalisation of Rs 16,700 crore.
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