Yes Bank to seek shareholders’ nod to raise ₹10,000 crore

Photo: Reuters

NEW DELHI : Private sector lender Yes Bank on Tuesday said it will seek shareholders’ nod to raise 10,000 crore via combination of equity and debt. The decision will be taken on lender’s Extraordinary General Meeting Scheduled on 7 February.

The private sector lender will seek shareholders’ nod to raise the amount through one or more instruments such as a qualified institutional placement (QIP), American depositary receipts (ADR) and global depositary receipts (GDR), foreign currency convertible bonds (FCCBs) or any other methods on private placement basis, according to a regulatory filing.

Further, Yes Bank will also seek shareholder’s nod to increase the authorized share capital from 800 crore to 1,100 crore, as per the regulatory filing.

The board of directors of Yes Bank had on Friday approved the fund raising plan. The move comes at a time when the private sector lender is desperately scouting for capital to stay compliant with Reserve Bank of India’s capital norms.

The board of directors of the private sector lender on Friday decided not to proceed with the offer from Erwin Singh Braich-SPGP Holdings. “The bank has received an updated proposal from the Investor extending the validity of its offer until January 31, 2020 for the Bank’s consideration and further evaluation. However, the Board has decided not to proceed with the offer,” the lender in a filing with the exchanges.

“Further, the board is willing to favourably consider the offer of $500 Million of Citax Holdings and Citax Investment Group and the final decision regarding allotment to follow in the next Board meeting, subject to requisite regulatory approval(s). However, the relevant conditions precedent could not be completed as on date. Hence, Citax offer will be taken up during the next round,” it added.

There had been consistent delay in bank’s capital raising plan and uncertainty regarding the quantum, lower current account deposits.

The shares of Yes Bank tanked 8.4% to close at 38.55 apiece in Tuesday’s trade.