Yes Bank gains as FPO to open on 15 July

Yes Bank jumped 3.45% to Rs 27 after the bank said it will launch its follow-on public offer (FPO) on 15 July.

The FPO will close on 17 July, the lender said in a filing to the stock exchanges on Thursday (9 July). The bank has set 14 July as anchor investor bidding date. The bank filed a red herring prospectus on 7 July 2020 for the FPO to raise up to Rs 15,000 crore via a fresh issue of equity shares. The offer will include an employee reservation portion of Rs 200 crore.

Yes Bank's capital raising committee of the board will meet "on or after July 10, 2020" to consider and approve the price band and discount if any as permitted under SEBI regulations.

State Bank of India (SBI) on Wednesday (8 July) said its executive committee of central board (ECCB) has approved a maximum investment of up to Rs 1,760 crore in Yes Bank's upcoming FPO.

The bank reported a net profit of Rs 2628.61 crore in Q4 March 2020 as against a net loss of Rs 1506.64 crore in Q4 March 2019. Total income rose 44.4% YoY to Rs 12,115.53 crore during the quarter. The bank generated an extraordinary income (net of tax) of Rs 6,296.94 crore during the quarter on account of writing down of certain Basel III additional tier-1 (AT-1) bonds amounting to Rs 8,415 crore. Excluding this extraordinary item, Yes Bank reported a net loss from ordinary activities of Rs 3,668.33 crore in Q4 March 2020 compared with a net loss from ordinary activities of Rs 1,506.64 crore in Q4 March 2019.

Yes Bank is a full service commercial bank' providing a complete range of products, services and technology driven digital offerings, catering to corporate, MSME & retail customers.

The bank was under moratorium for 13 days in March 2020. It resumed full-fledged banking operations from 18 March 2020. This came after a consortium of eight public and private banks, led by State Bank of India, agreed to infuse capital into Yes Bank to rescue it from the brink of a collapse. These financial institutions had together pooled in Rs 10,000 crore as investment at Rs 10 per share in Yes Bank when it faced pressure from depositors.

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