Indian Economy News

Yes Bank eyes US$600 million more after raising US$270 million from marquee investors

  • IBEF
  • August 16, 2019

Yes Bank Ltd planning to raise an extra US$ 600 million from large investors to reinforce its capital buffers.

The bank intends to raise more assets after its qualified institutional placement (QIP) offering that closed on Wednesday was oversubscribed, the individuals said on condition of obscurity. Yes Bank brought about US$270 million up in the raising support.

The bank has increased some certainty after mopping up US$ 270 million through the QIP in spite of the shortcoming in overall equity market.

Yes Bank affirmed that it has sold around 231 million shares to Societe Generale (18.75 per cent of 231 million), Key Square Master Fund Lp (16.2 per cent), BNP Paribas Arbitrage (14.43 per cent), HDFC Balanced Advantage Fund (10.26 per cent) and Key Square Master Fund II Lp (5.88 per cent), among different shares.

Yes Bank's successful QIP in a weak equity market pushed the bank's stock by 6 per cent, before it shut at Rs.76.55 on BSE, however raising increasingly capital will be critical for the bank if it intends to comply with capital adequacy regulation.

On Wednesday, Yes Bank raised Rs. 1,930 crores (US$ 268.27 million) through the QIP offerings. The share issuance brought about a 9.96 per cent stake dilution.

The bank initially wanted to raise US$1 billion to support its capital sufficiency proportion required under Basel III norms.

Yes Bank is managing a surge in doubtful loans, falling share price and a declining benefit. The bank's net benefit in the April-June quarter fell to Rs. 114 crores (US$ 15.8 million) from Rs. 1,109 crores in the year-ago period.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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