Yes Bank’s Rs 15,000-crore follow-on public offer (FPO) is open for subscription from July 15. The issue will remain open till July 17. The private lender is offering shares to the public in a price band of Rs 12-13, amounting to around 45 per cent discount to Tuesday’s closing price of Rs 20.95 a share.
The Capital Raising Committee (CRC) of the board of directors, at its meeting held on July 7, had approved fund raising through a follow-on public offer in order to help the lender to meet its capital requirements for the next two years.
The country’s sixth largest private sector bank raised Rs 4,100 crore from anchor investors on Monday at the lower end of the price bank. Bay Tree India Holding, an affiliate of Tilden Park, picked up as much as 55 per cent of the anchor book.
The embattled Yes Bank was on the brink of collapse earlier this year due to its past history of providing easy loans, which ended up as non-performing assets on its books.
In March, eight lenders led by State Bank of India had infused more than Rs 10,000 crore into Yes Bank, as part of a rescue deal approved by the Reserve Bank of India. This plan was put in place after the bank was put under a moratorium and its board superseded.
Liquidity worries have dogged India’s financial system for more than a year after the near-collapse of IL&FS, one of the country’s biggest “shadow banks” — responsible for significant consumer lending.
At 1:10 pm, the shares of Yes Bank were trading at Rs 20.60, lower by 1.6 per cent, on the BSE as against the previous day’s closing price of Rs 20.95.