Yes Bank Sets Price Band For FPO

Yes Bank Ltd. said its board approved the price band for the Rs 15,000-crore fundraising through the follow-on public offer.

The floor price has been fixed at Rs 12 apiece, while the cap is at Rs 13 per equity share, a discount of Re 1 for eligible employees of the private bank, according to an exchange filing. The fresh issue of shares will take place next week between July 15 and 17.

Earlier this week, Yes Bank had said its board had approved the fundraising via the FPO route. State Bank of India will invest up to Rs 1,760 crore as part of the FPO, the country’s largest lender had said on Wednesday.

Yes Bank is in need of a capital infusion even as a clutch of eight lenders, led by State Bank of India, pumped in more than Rs 10,000 crore in March this year as part of a rescue package approved by the Reserve Bank of India. As part of the rescue strategy, the private bank had to write-off Rs 8,415 crore of additional tier-1 bonds.

Yes Bank’s bank’s CET-1 ratio and tier-1 capital ratio stood at 6.3% and 6.5%, respectively, as on March 31, 2020 compared with the minimum requirements of 7.375% and 8.875%.

On June 17, Bloomberg reported that the private bank was looking to raise around Rs 8,000 crore through a public offering. The funds would help push the bank’s tier-1 core capital ratio to 10% from 6.5% as on March 31.

Shares of Yes Bank dropped more than 5% on Friday compared with a 0.55% decline in the Nifty 50 Index.