Yes Bank said its board has approved a proposal to increase the bank's authorised share capital to Rs 1,100 crore from Rs 800 crore.
The bank announced after market hours on Friday, 30 August 2019, that it will raise the authorised 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 proposal is subject to requisite approvals.
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 authorised the bank's MD & CEO Ravneet Gill to negotiate term sheets with prospective private investors.
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 28.79% below the QIP issue price.
Shares of Yes Bank rose 3.75% to settle at Rs 59.50 on Friday, 30 Friday 2019. The stock hit a 52-week low of Rs 53.15 on 22 August 2019. The stock hit a 52-week high of Rs 369.85 on 30 August 2018.
Shares of Yes Bank plunged 22.43% in nine trading sessions to settle at Rs 59.50 on Friday, 30 August 2019, from its close of Rs 76.70 on 19 August 2019. The stock slumped 83.56% in the past one year compared with 3.51% fall in Sensex.
The recent selling was triggered by a disclosure regarding irregularities and unauthorized transactions at CG Power and Industrial Solution made on 20 August 2019. As on 30 June 2019, Yes Bank held 12.79% stake in CG Power.
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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