Yes Bank says firmly on course to raising growth capital

Shares of Yes Bank was down 3.48% to Rs 54.10.

Yes Bank announced during trading hours today, 25 September 2019, that it has received strong interest from multiple foreign as well as domestic private equity & strategic investors for the proposed capital raise and it remains firmly on course to raising growth capital subject to the necessary approvals.

On 30 August 2019, the bank announced its plan to raise the authorized share capital by increasing the equity shares to 450 crore equity shares of Rs 2 each, aggregating to Rs 900 crore from the current 300 crore equity shares of Rs 2 each that aggregates to Rs 600 crore. The preference shares would be kept constant at two crore shares of Rs 100 each aggregating to Rs 200 crore.

The board has also delegated the powers to the capital raising committee of the board, with respect to the method and quantum of fundraising, including preferential allotment route, the bank said.

The board has also authorized the bank's MD & CEO Ravneet Gill to negotiate term sheets with prospective private investors.

Pursuant to the approval from the board of directors, the bank applied to the Reserve Bank of India requesting approval for increase in the bank's authorised share capital. Subsequent to this approval, the bank will seek approval from shareholders.

Yes Bank recently raised Rs 1,930 crore via qualified institutions placement (QIP), which was open between 8 and 14 August 2019. The bank allotted 23.1 crore equity shares of face value of Rs 2 each to eligible qualified institutional buyers at Rs 83.55 each. The stock is currently 35.25% below the QIP issue price.

Meanwhile, the S&P BSE Sensex was down 453.59 points or 1.16% to 38,643.55.

On the BSE, 1.07 crore shares were traded in the counter so far compared with average daily volumes of 1.63 crore shares in the past two weeks. The stock hit a high of Rs 56.8 and a low of Rs 53.3 so far during the day.

The stock hit a 52-week high of Rs 285.9 on 03 Apr 2019. The stock hit a 52-week low of Rs 52.65 on 20 Sep 2019.

Yes Bank's net profit fell 91% to Rs 113.76 crore on a 9.9% rise in the total income to Rs 9088.80 crore in Q1 June 2019 over Q1 June 2018.

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