YES Bank on Thursday announced that lender's board of directors cleared a further public offer (FPO) to raise around Rs 15,000 crore to boost its capital adequacy.
The private sector lender said it has filed a red herring prospectus after receiving approval from the capital-raising committee (CRC) of the board. The lender at its meeting held earlier today approved the floor price of its FPO at Rs 12 per equity share and a cap of Rs 13 per equity. YES Bank's board committee was scheduled to meet again on or after July 10 in order to consider and approve, among other things, the price band and discount, if any, for the FPO.
"The bank has filed a red herring prospectus (RHP) dated July 7, 2020, in connection with the offer, with the Registrar of Companies, Maharashtra at Mumbai," YES Bank said in a regulatory filing.
The private lender has reserved a portion of up to Rs 200 crore for employees in the forthcoming FPO, where a discount of Rs 1.00 per equity share will be given to the eligible employees.
As per lender's red herring prospectus dated (RHP), the shares can be bid in lots of 1,000 equity shares. FPO will open on July 15, 2020, and close on July 17, 2020.
"CRC meet is scheduled to be held on July 14, 2020, for the purposes of allocation of equity shares to the successful anchor investors and for determination of the anchor investor allocation price," YES Bank said in its regulatory filing submitted today.
In another update, the executive committee of State Bank of India's central board has approved for the investment of up to Rs 1,760 crore in YES Bank's upcoming FPO.
Shares of YES Bank were trading 9.19% lower at Rs 24.2 today, falling after 2 days of consecutive gain.