Private sector lender YES Bank said that it is planning to raise funds via follow on public offer or Further Public Offering (FPO) without announcing the amount.
In a late night exchange announcement, the lender said, “We wish to inform you that the Capital Raising Committee of the Board of Directors of the Bank (“CRC”), at its meeting held earlier today i.e., July 7, 2020, has approved raising funds by way of a further public offering (“Offer”).”
The lender revealed that it would disseminate further details after the completion of the requisite formalities with the Registrar of Companies, Maharashtra in accordance with Sebi guidelines.
The bank’s Capital Raising Committee (CRC) is likely to meet again on Friday, July 10 in a bid to consider and approve, amongst other things, the price band and other details of the offering, it said.
According to CNBC-TV18, the bank is expected to raise funds anywhere between Rs 10,000 crore to Rs 15,000 crore, depending on investor capacity.
Earlier, India’s largest lender State Bank of India (SBI, along with seven other financial institutions had infused Rs 10,000 crore investment in YES Bank as a part of the bank’s reconstruction scheme. This was done after the Reserve Bank of India put the bank under moratorium on March 5 and also superseded its board in the interest of its depositors.