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%.