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YES Bank gains 5% as firm looks to raise funds via QIP

The lender, which is planning to raise as much as $2 billion via share sale, wants to keep options open as it negotiates with prospective investors, the report said.

ETMarkets.com|
Updated: Dec 13, 2019, 03.47 PM IST
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NEW DELHI: Shares of YES Bank advanced over 5 per cent in Friday's session after ET reported that the private sector lender is seeking exemption from Sebi to raise funds under the qualified institutional placement (QIP) programme as a backstop for its ongoing plan to sell stake via preferential allotment.

The lender, which is planning to raise as much as $2 billion via share sale, wants to keep options open as it negotiates with prospective investors, the report said.

YES Bank earlier this week said it will decide on fundraising proposals at its next board meeting after it was unable to do so on Tuesday. The bank has binding and non-binding bids from many investors, including a Canadian billionaire of Indian origin, and Citax Holdings which is based in Singapore.

“The bank remains on course to raise capital through a preferential allotment,” YES Bank said in a statement in response to a query from ET. “The bank shall also consider approval to raise capital through multiple other modes viz. QIP, rights, etc in order to have the flexibility to tap multiple options for raising capital.”

Investor Citax is in the process of selling some assets and putting the promised half a billion dollars in an escrow account soon and then seek an approval from Reserve Bank of India.

The Citax bid, if approved, could lead to the investor owning 12-13 per cent of equity with other investors owning lesser stake. The domestic investors seeking to participate in YES Bank share sale include GMR Group ($50 million), Aditya Birla Family Office ($25 million) and Rekha Jhunjhunwala ($25 million), the bank had said.

The shares of the lender closed 2.87 per cent higher at Rs 46.65 on BSE.
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