Private sector lender YES Bank has gained by 3.5% at Rs 569. The company is set to raise $500 million by issuing fresh shares to a cluster of investors. This will lead to dilution of 10-12 per cent in promoter shareholding.
Officials involved in the qualified institutional placement (QIP) said the bank would sell shares at Rs 540-550/share. Goldman Sachs, Deutsche Bank, UBS, HSBC, JM Financial and Motilal Oswal Financial Services are the lead arrangers for the issue.
Currently, Rana Kapoor, and Madhu Kapur and her family are the company’s largest individual promoters; while Kapoor owns 5.55 per cent, Madhu Kapur and her family own 9.74 per cent.
In its annual report, released on Thursday, YES Bank said it planned to raise $500 million by different modes. “The bank proposes to raise additional capital aggregating up to $500 million or its rupee equivalent by way of placement of shares to qualified institutional buyers through QIP and/or private placement in international markets through ADRs (American depositary receipts)/GDRs (global depositary receipts) or foreign currency convertible bonds or issue of fully-convertible debentures/partly-convertible debentures, preference shares convertible into equity shares, and/or any other financial instruments or securities convertible into equity share.”
The bank scrip opened at Rs 560.30 and hit a high of Rs 576.25 so far.
