YES Bank has, it told the stock exchanges, convened an extraordinary general meeting of its shareholders on February 7 on fund raising for Rs 10,000 crore, and to authorise an expansion in its authorised capital from Rs 800 crore now to Rs 1,100 crore.
Last week, it notified the exchanges that its board of directors had approved the raising of funds up to Rs 10,000 crore in one or more tranches, through Qualified Institutional Placement, Global Depository Receipts, American Depository Receipts, Foreign Currency Convertible Bonds or any other method on a private placement basis.
Earlier, it was in talks with several investors in this regard but after months of uncertainty, scaled down the fund raising plan substantially. There had been offers from Erwin Singh Braich, Citax Holdings and Citax Investment Group. Braich updated its offer but the bank decided not to proceed with this. Citax’s offer will be taken up later, as “relevant conditions precedent could not be completed”. The bank’s core equity capital is 8.7 per cent of the total, against the minimum regulatory requirement of 8 per cent.
Its shares closed 8.4 per cent down on Tuesday, at Rs 38.55 on the BSE exchange.
YES Bank acquires 30% in Reliance Power arm
YES Bank on Tuesday said it had acquired around 30 per cent stake in a wholly-owned subsidiary of Reliance Power pursuant to invocation of pledged shares.
The bank has acquired 12,73,21,500 equity shares having nominal value of Rs 10 each per share constituting around 29.97 per cent of the post-issue paid-up share capital of Rosa Power Supply Company (RPSCL), a wholly-owned subsidiary of Reliance Power, YES Bank said in a regulatory filing.
“Shares have been acquired pursuant to invocation of pledge of shares to RPSCL subsequent to default/breach of terms of credit facilities sanctioned by YES Bank to Reliance Power,” it added. Incorporated in 1994, RPSCL is engaged in the business of power generation. The plant (1,200 Mw) in Uttar Pradesh, owned by the RPSCL generated 4,341 million units for the year ended March 31. (With PTI inputs)