Private lender Yes Bank today said approval by the government to hike the foreign investment limit to 74 per cent will enhance its flexibility in raising capital at a global level, going forward.
It is expected to bring in foreign direct investment (FDI) of the order of USD 1 billion (Rs 6,885 crore) into the bank.
The Cabinet Committee on Economic Affairs (CCEA) yesterday allowed the bank to increase foreign investment limit to 74 per cent, from 41.87 per cent earlier.
"The increase in limit will provide Yes Bank with significant enhanced flexibility in global capital raising, going forward. Yes Bank already has an enabling approval from its board of directors to raise an additional USD 1 billion of equity capital," the bank said in a statement today.
The hike in investment limit comes without any sub-limits.
The modes of instruments for investment include qualified institutions placement (QIP) of equity shares or issue of ADRs/GDRs and/or QFIs/FPIs (except NRIs) under the Portfolio Investment Scheme by acquisition of permissible securities on stock exchanges.
Yes Bank said it has become the first bank in India to receive such an approval for a fully fungible composite foreign investment limit of 74 per cent.
The hike in overseas shareholding was notified by the Cabinet in 2015 in order to remove sub-ceilings for multiple investor categories of FII, FDI and FPI.
The stock today closed 2.93 per cent higher at Rs 1025.40 on BSE.
