YES Bank gains on raising Rs 1,930 crore via QIP
The QIP opened on August 9 and closed on August 14, the bank said in a regulatory filing.
By ETMarkets.com | Updated:
BCCL
Shares of YES Bank were trading over 3 per cent higher in trade on Friday after the lender on Wednesday said it has raised Rs 1,930.46 crore through qualified institutional placement (QIP) to fund its business expansion.
The QIP opened on August 9 and closed on August 14, the bank said in a regulatory filing.
YES Bank approved the issue price of Rs 83.55, including a share premium of Rs 81.55 per share which is at a discount of 4.95 per cent to the floor price of Rs 87.90 per equity.
The bank offered 23.10 crore shares aggregating to 9.96 per cent of the share capital as against a limit of 10 per cent of pre-issue share capital as approved by the shareholders, it said.
After the QIP, Ravneet Gill, MD & CEO of YES Bank in an interaction with ETNOW said, “We are looking at private equity and preferential allotment. We also have the option to do rights issues as well. There are multiple routes available to us and given the fact that the genres of investors we are currently looking at, we are keeping our options open with regard to what instrument we eventually adopt.”
He also added that the bank’s pre-provisioning operating profit is enough to meet its provisioning needs.
“All capital that we raise will really be growth capital. If you look at the market opportunity right now with the dislocation in so many segments of credit markets, there is a tremendous opportunity for a bank like ours to grow and obviously we would like to do that as soon as possible,” Gill said.
The shares of the lender closed 3.79 per cent higher at Rs 79.45 on BSE.
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The QIP opened on August 9 and closed on August 14, the bank said in a regulatory filing.
YES Bank approved the issue price of Rs 83.55, including a share premium of Rs 81.55 per share which is at a discount of 4.95 per cent to the floor price of Rs 87.90 per equity.
The bank offered 23.10 crore shares aggregating to 9.96 per cent of the share capital as against a limit of 10 per cent of pre-issue share capital as approved by the shareholders, it said.
After the QIP, Ravneet Gill, MD & CEO of YES Bank in an interaction with ETNOW said, “We are looking at private equity and preferential allotment. We also have the option to do rights issues as well. There are multiple routes available to us and given the fact that the genres of investors we are currently looking at, we are keeping our options open with regard to what instrument we eventually adopt.”
He also added that the bank’s pre-provisioning operating profit is enough to meet its provisioning needs.
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“All capital that we raise will really be growth capital. If you look at the market opportunity right now with the dislocation in so many segments of credit markets, there is a tremendous opportunity for a bank like ours to grow and obviously we would like to do that as soon as possible,” Gill said.
The shares of the lender closed 3.79 per cent higher at Rs 79.45 on BSE.
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