Yes Bank climbs 2% as lender kicks off $650-million QIP offer

NEW DELHI: Shares of Yes Bank climbed over 2 per cent in Friday’s trade after hit the market to raise up to $750 million from domestic and overseas institutional investors through a qualified institutional placement.

The Mumbai-based bank announced a floor price of Rs 1,498.95 for the offer, a slight discount to the closing price of its shares on Thursday.

Following the development, the stock rose 1.83 per cent to hit a high of Rs 1,543.90 on BSE.

The new issue size is $650 million with an option to raise another $100 million. The sale, launched after market hours, comes more than six months after the bank withdrew a similar issue in September last year.

Though YES Bank's capital adequacy at 16.9 per cent is higher than the minimum required 9 per cent, the lender needs to raise more capital to serve its rapid growth. Its advances grew 39 per cent year-on-year in the quarter ended December 2016 compared with less than 5 per cent growth for the banking industry, ET reported.

According to ET Now sources, the demand for the issue is in excess of 2 times the overall size. Bids worth $1.5 billion were already done, it said.