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Cabinet Committee on Economic Affairs (CCEA) has given its approval to YES Bank for increasing its foreign holdings to 60%. The bank is also planning is raise $500 million (Rs 2900 crore approximately) though the Qualified Institutional Placement (QIP), American Depository Receipt (ADR) or Global Depository Receipt (GDR) route
The bank has already got its shareholders' approval to raise up to $500 million. This proposal was referred to CCEA in April by Foreign Investment Promotion Board (FIPB). The FIPB, this proposal to the CCEA for consideration as it was beyond the Board’s investment approval limit of Rs 1,200 crore. Only those Foreign direct investment (FDI) proposals of up to Rs 1,200 crore are cleared by FIPB, while investments above this limit are approved by CCEA.
At 11.26 am, the shares of YES Bank were trading at Rs 452.05 on the Bombay Stock Exchange (BSE), up by 1.84% from previous day's close.
