Yes Bank to raise Dollar 2 billion through preferential allotment of shares

Private sector lender Yes Bank has decided to raise up to two billion dollars (about Rs 14,300 crore) through preferential allotment of shares. Eight new investors have expressed interest in acquiring a fresh stake in the bank, according to a late night communication to stock exchanges issued after a marathon meeting of the board of directors on November 29. These include three institutional investors and five family offices. However, Yes Bank said that discussions are still on and will conclude shortly. None of the investors will be allotted equity shares such that their holding exceeds 25% of the bank's share capital. The preferential allotment will be subject to regulatory and statutory approvals. According to rules of the Reserve Bank of India (RBI), any acquisition of shareholding or voting rights of five per cent or more will be subject to obtaining prior approval from the regulator. In case of financial institutions, the shareholding has been capped at 10 per cent. Yes Bank is India's fourth largest private sector bank with presence across all 28 states and 9 union territories. It has been striving to fund its growth and improve asset quality.