Yes Bank Ltd shares bounced back over 6% in intraday trade on Friday, i.e. 16 August, after a media report said that the lender is planning to raise an additional $600 million after the successful qualified institutional placement (QIP) offering.
At 12:19 pm, Yes Bank shares were trading at Rs 81.35, up 6.3%, on BSE. The stock has lost over 10% in the last one week.
According to a report by Livemint, Yes Bank’s QIP offering that closed on 14 August was oversubscribed and helped the lender raise about $270 million. This has given the confidence to the bank to go for second round of fund-raising. “In the next few weeks, Yes Bank will reach out to shareholders to secure a fresh approval for another capital raising plan,” the Livemint report quoted a source as saying.
The report also added that since the dilution of shareholding would be larger than that in the recently-concluded QIP, Yes Bank may bring in strategic investors who could support the bank’s growth.
Yes Bank had closed QIP on Wednesday totalling Rs 1,930.4 crore at an issue price of Rs 83.55 per share. The issue price was at a discount of roughly 5% to the floor price of Rs 87.90 per share.
In a stock exchange notification on Thursday, Yes Bank confirmed that it has sold a total of around 231 million shares to investors including Societe Generale (18.75% of the total), Key Square Master Fund Lp (16.2%), BNP Paribas Arbitrage (14.43%), HDFC Balanced Advantage Fund (10.26%) and Key Square Master Fund II Lp (5.88%), among others.
Yes Bank had earlier planned to raise $1 billion to shore up its capital adequacy ratio required under Basel III norms. But mounting bad loans, shrinking profit along with a gradual fall in the bank’s share price reportedly led to the change in its capital-raising plans.
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