Yes Bank board approved raising Rs 16,000 crore to fund business growth. The bank has planned to raise the funds via a mix of equity and debt. Yes Bank, in a statement on June 3, said it will raise Rs 7,500 crore through equity securities and Rs 8,500 crore via debt securities. This comes at a time when the private sector lender is gradually moving on the path of financial recovery especially after 20% stake sale deal with Japan's investment bank Sumitomo Mitsui Banking Corporation.
“...Board of Directors of the bank [Yes Bank], considered and approved...raising of funds by the way of issuance of eligible equity securities shall not exceed Rs 7,500 crore...by way of issuance of eligible debt securities shall not exceed Rs 8,500 crore,” Yes Bank said in an exchange filing on Tuesday.
The fund raise is subject to shareholder and regulatory approvals. The company, in a statement on exchange filing, highlighted that the board has approved amendments to the Articles of Association of the bank in accordance with the terms of the share purchase agreement dated May 9, executed by and amongst the bank, SMBC and the State Bank of India (SBI). The share purchase agreement is yet to receive the Reserve Bank of India and Yes Bank shareholders’ approval.
The rights of Japan’s SMBC bank and SBI, which are proposed to be incorporated into the Articles of Association of Yes Bank, are subject to the fall-away thresholds of 10% and 5%, respectively. Following the revision, SMBC or any of its approved assignees would have the right to nominate two non-executive and non-independent directors for appointment to the company’s board.
Yes Bank Shares
The shares of Yes Bank were trading at Rs 21.01, up by 0.72% at early trading hours today. The shares of the company were up by 18.39% to Rs 21 when compared to a month before and 6.98% to Rs 21 on a year-to-date basis. The shares of the company were up by 18.39% to Rs 21 when compared to a month before.
