The private sector lender Yes Bank, Thursday filed paper for its proposed follow-on public offer (FPO), through which the lender is aiming to raise Rs 15,000 crore.
The FPO – a process by which a company already listed in an exchange issues new shares to investors or existing shareholders – will be open from July 15 to July 17 and bidding by anchor investors will be held on July 14.
The lender has reserved a portion of up to Rs 200 crore for employees in the forthcoming FPO.
According to the media reports the lender is already generating strong institutional investors interest.
State Bank of India on Wednesday received executive committee approval for a maximum investment of up to Rs 1,760 crore in FPO of YES Bank.
Another report mentions of Tilden Park and the Life Insurance Corporation of India (LIC) getting the Reserve Bank of India (RBI) approval to invest 9.9% in YES Bank.
The raising of funds via FPO will help the bank restore its capital adequacy ratio.
Capital Adequacy Ratio of YES Bank was pegged at 8.5% at the end of FY20, as opposed to 16.5% seen at the end of FY19. The bank’s Tier I ratio was below RBI’s regulatory minimum.
Investment banks Axis Capital, Kotak Mahindra Capital, Citi and Bank of America are advising Yes Bank on the FPO.
The government had in March approved a rescue plan for Yes Bank. Under the plan, domestic investors including SBI, Housing Development Finance Corp. Ltd, ICICI Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank and IDFC First Bank invested Rs 10,000 crore into Yes Bank. State-run SBI led the rescue with a Rs 6,050 crore infusion and currently holds a 48.2% stake in the bank.
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