YES Bank, the new private sector bank, has filed a draft red herring prospectus with Sebi for its initial public offering (IPO) of seven crore equity shares."YES Bank will offer seven crore new shares of Rs 10 each at a price to be decided throgh the book-building process," managing director RanaKapoor said today.The bank needs about Rs 500 crore in the form of additional capital - equity and debt - to grow the business in the next two years, and the proceeds of equity offering would help improve single borrower eligibility, Kapoor said adding the funds would also be used to create infrastructure for retail and business banking.Post-IPO, the shareholding of promoters would reduce from 52% to about 40%, he said.The bank has appointed DSP Merrill Lynch and Enam Financial as book running lead managers for the offer, Kapoor added.
