Yes Bank, a private sector bank announced on Thursday that it has managed to raise $225 million (approx. Rs 1,034 crore) via selling its shares privately to institutional investors. A statement released by the bank said, “The issue of $225 million, was significantly oversubscribed on strong demand from foreign institutional investors and domestic mutual funds”.
The bank is expected to allot 3.84 crore equity shares at the price of Rs 269.50 per share to institutional buyers as a part of the Qualified Institutional Placement (QIP). This is expected to hike the total capital adequacy of the bank to more than 20 percent.
Yes Bank’s managing director & CEO Rana Kapoor said that this exercise was undertaken in order to further increase the bank’s core Tier I capital base/capital adequacy, as well as to increase the long-term capital of the bank. He further said that by undertaking this capital raising exercise, the bank’s overall capital funds have exceeded Rs 5,000 crore.
This QIP will dilute the bank’s expanded capital base by 11.33%, the statement stated further. The Joint Global Coordinates and Book Running Lead Managers to this issue were Morgan Stanley, CLSA and Goldman Sachs.
Kapoor also said that the bank plans to drastically expand its Large Corporates Business (C&IB), and the fast growing Commercial Banking businesses. The bank’s shares closed at Rs 245.60, an increase of 4.16% over the preceding close on the BSE.