Private sector lender Yes Bank on Thursday said it has raised $225 million (about Rs 1,034 crore) through private placement of shares to institutional investors.“The issue of $225 million, was significantly oversubscribed on strong demand from foreign institutional investors and domestic mutual funds,” Yes Bank said in a statement.
The bank will issue 3.84 crore equity shares at Rs 269.50 per share to institutional investors under the Qualified Institutional Placement (QIP), which would raise the overall capital adequacy of the bank to over 20 per cent.
“This capital raising has been consummated to further augment our core Tier I capital base/capital adequacy, and enhance the long-term resources of Yes Bank. With this capital raising, Yes Bank's total capital funds have crossed Rs 5,000 crore,” Yes Bank managing director & CEO Rana Kapoor said.
The said QIP will lead to a dilution of 11.33 per cent of the expanded capital base of the bank, the statement said. Morgan Stanley, CLSA and Goldman Sachs were the Joint Global Coordinates and Book Running Lead Managers to the QIP issue.
“We will significantly augment our Large Corporates Business (C&IB), and the high growth Commercial Banking businesses…,” Kapoor said.
Source: Economic Times