Private sector lender Yes Bank today informed stock exchanges that it has received a binding offer from a global investor for an investment of $ 1.2 billion in the bank through fresh issuance of equity shares. It is subject to regulatory approvals / conditions as well as bank’s board and shareholders approvals, the bank said. Yes Bank shares surged as much as 35% to₹76. 65 after the announcement. The bank however did not disclose the name of the investor.
The lender also said that it continues to be in advanced discussions with other global and domestic investors for fund raising.
News channel CNBC TV – 18, citing sources, said that Hong Kong-based SPGP Holdings has shown interest in investing around $ 1.2 billion in Yes Bank, according to a Reuters report.
Yes Bank’s board is likely to consider the investment proposal from SPGP Holdings and other proposals along with quarterly results on **** 1, the report added.
“Apart from maintaining minimum capital requirements, the amount is sizeable enough which can take care of future growth as well. One of major overhang on capital will get elevated, “said Anusha Raheja, BFSI Research Analyst at LKP Securities.
Yes Bank had earlier this year raised around $ 270 million through a qualified institutional placement (QIP).
Raising more capital will be crucial for Yes Bank to achieve regulatory balance between capital adequacy rules and business growth.
CEO Ravneet Gill had earlier said the bank was in talks with private equity firms, strategic investors and family offices to raise additional capital.
Yes Bank shares are up over 80% so far this month after various news reports had suggested that the lender is in talks with investors to raise funds. But year to date, the stock is still down over 50%.
Minthad on 6th October reported that Yes Bank was in talks with top technology companies, including Microsoft Corp, to induct one of them as a strategic shareholder.
Yes Bank shares today ended 24% higher at₹45 apiece.
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