Private sector lender YES Bank has said it has received shareholders' nod to raise capital up to Rs 10,000 crore via issuance of equity shares or other convertible securities. At the Extraordinary General Meeting, the lender has also received approval to increase authorised share capital of the bank to Rs 1,100 crore. The current authorised share capital of the bank is Rs 800 crore.
"The resolutions related to the following business as set out in the notice of EGM were passed by the members with requisite majority: To increase authorized share capital and consequent alteration of capital clause of the Memorandum of Association (Ordinary Resolution); to authorise capital raising through issuance of equity shares or other convertible securities (Special Resolution)," YES Bank said in a regulatory filing on Friday.
As per exchange information, the bank had proposed to raise the authorised share capital to Rs 1,100 crore divided into 450 crore equity shares of Rs 2 each amounting Rs 900 crore and two crore preference shares of Rs 100 each amounting to Rs 200 crore.
In a board meeting on January 10, YES Bank's board had approved raising of funds of up to Rs 10,000 crore in one or more tranches through qualified institutional placement (QIP) or any other private placement of equity or debt. The private lender also rejected $1.2 billion investment offer made by Erwin Singh Braich/SPGP Holdings.
In December, YES Bank in a filing to the bourses disclosed that its board was willing to favourably consider London-based Citax Holdings' $500 million offer, adding that it would continue to evaluate other potential investors to raise capital upto $2 billion. The bank had said the $1.2 billion binding offer submitted by Canadian industrialist Erwin Singh Braich continues to be under discussion. Among others who showed willingness for fund infusion were US-based Capital International ($120 mn), GMR Group and Associates ($50 mn), billionaire investor Rakesh Jhunjhunwala's wife Rekha Jhunjhunwala ($25 mn) and Aditya Birla Family Office ($25 mn).
By Chitranjan Kumar