Home >Markets >Stock Markets >Yes Bank follow-on public offer to shore up capital adequacy likely to open 8 July
Photo: Mint
Photo: Mint

Yes Bank follow-on public offer to shore up capital adequacy likely to open 8 July

  • Anchor investors are likely to invest up to 4,500 crore if the bank decides to go for the entire amount it has approval for
  • SBI, Yes Bank’s largest shareholder, holds 48.21% equity, a stake it came to have in April under RBI-authored takeover

The follow-on public offer of the State Bank of India-backed Yes Bank is likely to open on 8 July and close on 10 July, according to sources familiar with the development. The anchor book will open on 7 July and close the same day, sources said. The funds are crucial for the lender to shore up its capital adequacy, languishing at 8.5% as of end March.

Under Basel III, a bank's tier 1 and tier 2 capital adequacy ratio must be a minimum 12.5% of its risk-weighted assets.

The bank hasn’t yet decided on the amount to be raised through the FPO though it has the necessary approvals to raise up to 15,000 crore.

Anchor investors are likely to invest up to 4,500 crore if the bank decides to go for the entire amount it has approval for. The bank has the option to go for a mix of instruments including American Depositary Receipts, Global Depositary Receipts and debt to raise 15,000.

Tuesday on the BSE, Yes Bank share closed at 25.60, down 1.9% from Monday’s close. The bank has a market capitalization of 32,129.21 crore.

SBI, Yes Bank’s largest shareholder, holds 48.21% equity, a stake it came to have in April under a Reserve Bank of India-authored takeover of the bank that was near collapsing.

According to corporate data services provider Capitaline, Yes Bank’s gross non-performing assets at the end of March came at 16.8%.

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