Yes Bank Fundraising Size Increased To Rs 15,000 Crore

Olga Robert

On Thursday, Yes Bank board decided to raise up to Rs 5,000 crore additional funds over and above the Rs 10,000 crore approval already in place (total Rs 15,000 crore).

"The Board, at its meeting today, has approved, subject to receipt of requisite approvals, raising of funds for an additional (in addition to Rs 10,000 Crores above) amount aggregating up to Rs. 5,000 Crores (Rupees Five Thousand Crores), in one or more tranches.....by way of issuance of securities but not limited to through a qualified institutions placement/ public issue, rights issue, global depository receipts, American depository receipts, foreign currency convertible bonds or any other permissible mode," the bank said in its regulatory filing.

Also, in aggregate, the fundraising cannot exceed Rs 15,000 crore, it said.

"It is clarified that no shareholders' approval has been sought, nor is such approval required, in the event that any issuance of securities is undertaken by way of a rights issue," it added.

The fundraising comes after the Reserve Bank of India (RBI) drafted a rescue plan for the private bank, approved by the government, wherein the State Bank of India along with seven other major Indian banks injected Rs 10,000 crore into the bank to rescue it from its widespread crisis.

Shares of Yes Bank closed 10.27 percent lower at Rs 26.65 on BSE on Thursday.

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