The shareholders of YES Bank on Friday cleared a proposal to raise up to Rs 10,000 crore by issuing equity shares or convertible securities.
This would help enhance the private sector lender’s capital adequacy.
At an extraordinary general meeting, investors approved a resolution to increase authorised share capital from Rs 800 crore to Rs 1,100 crore.
They also authorised the lender’s plans to raise capital through issuance of equity shares or other convertible securities (Special Resolution), the bank informed the BSE.
Earlier this month, the bank scaled down its fundraising plan substantially to Rs 10,000 crore, from nearly to $2 billion approved by the board in November, as it continued with its struggle to get investors. It would raise the money, in one or more tranches, through Qualified Institutions Placement, Global Depository Receipts, American Depository Receipts, Foreign Currency Convertible Bonds, or any other methods on a private placement basis.
The bank had said it was “willing to favourably consider the offer of $500 million of Citax Holdings and Citax Investment Group and the final decision regarding allotment would be taken in the next board meeting, subject to requisite regulatory approval(s)”.
The Citax offer would be taken in the next round as the “relevant conditions precedent could not be completed as of date”.
The bank also said it received an updated proposal from Erwin Singh Braich and SPGP Holdings, but “decided not to proceed with the offer”.