Private lender Yes Bank will raise up to Rs 15,000 crore through further public offering (FPO), the bank informed the exchanges in a regulatory filing on Thursday. The bank has filed a red herring prospectus to raise the amount through issuance of fresh equity shares, the filing mentioned. Earlier this week, Yes Bank had received approval from the capital-raising committee (CRC) of its board of directors to raise funds through the offering. The offer will open on July 15 and close on July 17, the filing said, adding that the equity shares will be offered at a face value of Rs 2 apiece. Shares worth Rs 2,000 crore will be reserved for the bank’s employees.
Meanwhile on Wednesday evening, State Bank of India (SBI) said that it will further invest Rs 1,760 crore in the public offering. In March this year, the board of the country’s largest lender approved an investment of Rs 7,250 crore. Earlier this year, the Reserve Bank of India (RBI) had taken control of Yes Bank, after the bad-debt laden lender had failed to raise the capital it needed to stay above mandated regulatory requirements. Since then SBI and other banks and financial institutions had stepped in to acquire a stake in the private lender and to keep it afloat.
In Thursday’s trading session, Yes Bank shares edged up higher. At 1:15 pm, the bank’s shares were priced at Rs 26.40, up more than 1 per cent from the previous closing mark.