YES Bank is planning an initial public offering (IPO) to raise over Rs 300 crore and tier-II capital of Rs 100 crore before June to fund its growth plans.Ashok Kapur, chairman of YES Bank, said: "The bank would issue seven crore new shares of Rs 10 each at a price to be decided by the book building process. The public issue would be made in the first quarter of the next fiscal."Post-IPO, the shareholding of promoters would reduce from 52% to about 40%, he added.Rana Kapoor, MD of YES Bank, said the current equity capital base is Rs 200 crore, and the bank needs additional funds to strengthen capital adequacy and build infrastructure including branch network.The bank has appointed DSP Merrill Lynch and Enam Financial as book running lead managers for the offer, Kapoor added."The bank has signed a letter of intent with a multilateral agency for raising Rs 100 crore by issuing tier-II bonds," he said.The capital infusion would help to hold business portfolio of over Rs 6,000 crore with a capital adequacy of 12% in the start-up phase, Kapoor said.The bank expects to close the current financial year with a balance sheet size of Rs 1,250 crore with an asset base of close to Rs 900 crore, he added.
