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Yes Bank climbs 9% on plans to raise additional $1.2 billion

Last week, Yes Bank raised Rs 1,930 crore through Qualified Institutions Placement (QIP) route.

August 23, 2019 / 10:17 AM IST
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Shares of Yes Bank rallied 8.8 percent intraday on August 23 after a media report indicated that the lender is expected to consider raising funds again soon.

The stock rebounded after losing 29 percent in the previous four consecutive sessions due to fall in the valuation of exposure (12.79 percent stake) to CG Power which reported corporate governance issues. It was quoting at Rs 60.45, up Rs 4.15, or 7.37 percent on the BSE at 1010 hours.

The private sector lender's board of directors are likely to meet soon for mulling further fundraising, reported CNBC-TV18, quoting unnamed sources.

The business news channel learnt that the bank may be eyeing an additional $1.2 billion equity infusion and is expected to seek shareholder approval after getting the nod from board members.

It may engage with private equity companies and other strategic investors for fundraising, said sources, but it is yet to respond to CNBC-TV18's query w.r.t fundraising.

Last week, Yes Bank raised Rs 1,930 crore through Qualified Institutions Placement (QIP) route. It allotted 23.1 crores equity shares to eligible qualified institutional buyers at Rs 83.55 per share.

As a result, its total capital adequacy ratio increased to 16.2 percent, Tier I ratio to 11.3 percent and core equity Tier I ratio to 8.6 percent, ensuring that the bank remains capitalised well above the regulatory limits, the bank said.

Moneycontrol News
first published: Aug 23, 2019 10:16 am

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