Near Bankruptcy in March, YES Bank is looking to turn things around with a Further Public Offering (FPO). Falling from 404 to 19 levels in the last two years, YES Bank got punished for its (accused) corrupt leadership.
SBI, HDFC Bank and Kotak Bank offered to buy stakes in YES Bank in march and reconstruct it back to where it belongs. Results for the financial year 2019-20 showed that the bank is back into the business.
Now, Private sector lender Yes Bank has filed the offer document for its planned follow on public offer with the Registrar of Companies and could raise between ₹10,000 crores and ₹15,000 crores through the route.
The bank had on Tuesday night announced that its proposal for capital raise through an FPO was cleared by the Capital Raising Committee of its board of directors on Tuesday.
“Post closure of the requisite formalities with the Registrar of Companies, Maharashtra at Mumbai, the details in respect of the offer will be disseminated…,” it said.
The committee will meet again on July 10 to approve the price band and discount, amongst other issues, the lender said in a regulatory filing. Whereas the country’s largest lender State Bank of India (SBI) will invest up to Rs 1,760 crore in private lender Yes Bank’s follow-on public offer (FPO), it said in an exchange filing on July 8.
Yes, Bank did not disclose details about possible investors, nor did it specify the amount it will raise through the FPO. Sources said the FPO could be launched as early as next week.
The lender had recently restated its consolidated and standalone financial statements for the last three fiscals from 2017-18 to 2019-20.
On Wednesday, the bank’s scrip closed 1.36 percent higher at ₹26.10 apiece on BSE. The bank had a capital adequacy ratio of 8.5 percent as of March 31, 2020.
We suggest buying YES bank shares in small quantities as it yields high risk. But if this stock succeeds, it will produce a very high return as well.
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