State Bank of India (SBI) on Wednesday said its executive committee of central board (ECCB) has approved a maximum investment of up to Rs 1,760 crore in Yes Bank's upcoming follow-on public offer (FPO).
Yes Bank on Tuesday (7 July 2020) announced that the capital raising committee of the board of directors has approved raising funds through FPO. It added that the committee would meet "on or after July 10, 2020" to consider and approve the price band and discount if any as permitted under SEBI regulations.Meanwhile, Yes Bank on Thursday (9 July) announced that it has filed a red herring prospectus on 7 July 2020 in connection with the FPO. The bank will raise upto Rs 15000 crore, by way of a fresh issue of equity shares, including an employee reservation portion of up to Rs 200 crore. The FPO will open on 15 July and close on 17 July 2020. The bank has set 14 July as anchor investor bidding date.
Shares of SBI were trading 1.25% higher at Rs 194.35 on BSE while Yes Bank was up 3.26% at Rs 26.95 on BSE.
Yes Bank was under moratorium for 13 days in March 2020. It resumed full-fledged banking operations from 18 March 2020. This came after a consortium of eight public and private banks, led by State Bank of India, agreed to infuse capital into Yes Bank to rescue it from the brink of a collapse. These financial institutions had together pooled in Rs 10,000 crore as investment at Rs 10 per share in Yes Bank when it faced pressure from depositors.
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