- Issue of 3.84 crores shares at Rs. 269.50 per share aggregating Rs. 1033.87 crores
- Increases Total Capital Adequacy to over 20% & Tier I capital adequacy over 13%
- Total Capital Funds at Rs. 5,070 crores, Shareholder funds at Rs. 3,000 crores
YES BANK, India’s new age private sector Bank, today announced that it has successfully raised USD 225 million (Rs. 1033.87 Crores) through a Qualified Institutions Placement (QIP). YES BANK will issue 3.84 crores equity shares at Rs. 269.50 per equity share (including a share premium of Rs. 259.50). The placement increases the overall capital adequacy to over 20% and Tier I Capital Adequacy to over 13% (based on assets as at December 31, 2009). The additional capital now brings the Total Shareholders’ funds to Rs. 3,000 crores, and the Total Capital funds to Rs. 5,070 Crores pursuant to the QIP and an additional placement of Rs. 300 crores of Lower Tier II debt on January 22, 2010. This will lead to a dilution of 11.33% on the expanded capital base.
The issue of USD 225 million, was significantly oversubscribed on strong demand from foreign institutional investors and domestic mutual funds. The capital raising comes on the back of record profits of Rs. 125.9 crores and a robust credit growth of 71.1% y-o-y delivered by the Bank in Q3FY10.
On the successful completion of the equity issuance, Mr. Rana Kapoor, Founder/Managing Director & CEO said, “This capital raising has been consummated to further augment our core Tier I capital base/capital adequacy, and enhance the long-term resources of YES BANK. With this capital raising, YES BANK’s total capital funds have crossed Rs. 5,000 crores.”
Mr. Kapoor further added, “Despite the challenging financial environment, YES BANK has shown a strong, and sustained growth in financial performance over the last five quarters. The enhanced capital base through the QIP and our recent Tier II issuances, positions YES BANK for the economic upturn. We will significantly augment our Large Corporates Business (C&IB), and the high growth Commercial Banking and Branch Banking businesses through a focused customer relationship management approach. Our goal is to increase the amount of business we do with our customers by building on our strong customer relationships and cross-selling our banking and advisory products. We are working to increase the proportion of low-cost retail deposits by expanding our branch and ATM network, and by positioning our Internet and phone banking platform along with other alternative delivery channels to attract customers in various liability segments.”
Morgan Stanley, CLSA and Goldman Sachs were the Joint Global Coordinates and Book Running Lead Managers to the QIP issue. The Legal Advisors to the issue were Amarchand & Mangaldas & Suresh A. Shroff & Co., and the international legal advisors to the Book Running Lead Managers were Linklaters. The Auditors were BSR & Co. Chartered Accountants.
Legal Disclaimer: Please note that the above press release is for information only and does not constitute an offer of sale of shares. These materials are not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia). These materials do not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The shares mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933 (the “Securities Act”). The shares may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act. There will be no public offer of securities in the United States.
About YES BANK
YES BANK, India’s new age private sector Bank, is the outcome of the professional & entrepreneurial commitment of its Founder, Rana Kapoor and its top management team, to establish a high quality, customer centric, service driven, private Indian Bank catering to the future businesses of India. YES BANK has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers.
YES BANK has a knowledge driven approach to banking, and a superior customer experience for its retail, corporate and emerging corporate banking clients. YES BANK is steadily evolving as the Professionals Bank of India with the long term mission of “Building the Best Quality Bank of the World in India”.