Yes Bank share price gains as board approves raising up to ₹16,000 crore
Yes Bank share price gained over a percent in early trade on Wednesday after the private lender's board approved raising of ₹ 16,000 crore through a mix of equity and debt to fund business growth. Yes Bank shares rose as much as 1.87% to ₹ 21.24 apiece on the BSE.
The board of directors of Yes Bank approved raising of funds by way of issuance of eligible equity securities through various permissible means, of up to ₹ 7,500 crore, which would not result in an aggregate dilution of more than 10% (including dilution on account of issuance of equity securities in terms of this item and conversion of any convertible debt securities approved by the board), Yes Bank said in a regulatory filing on June 3.
The board also approved raising funds by way of issuance of eligible debt securities in Indian or foreign currency up to ₹ 8,500 crore and would not result in an aggregate dilution of more than 10%, the private lender added.
Yes Bank's board also approved amendments to its Articles of Association pursuant to the terms of the share purchase agreement dated May 9 executed by and amongst the bank, Sumitomo Mitsui Banking Corporation (SMBC) and State Bank of India (SBI), which would be subject to approval of the Reserve Bank of India and shareholders of the bank.
The rights of SMBC and SBI that are proposed to be incorporated into the Articles of Association of the bank are subject to the fall-away thresholds of 10% and 5%, respectively.
Global investment firm Carlyle group on Tuesday sold a 2.6% stake in Yes Bank for ₹ 1,775 crore through open market transactions.
US-based Carlyle, through its affiliate CA Basque Investments, sold a total of 82 crore Yes Bank shares, representing a 2.62% stake in the bank on the NSE and BSE, as per the bulk deal data on the bourses. The shares were offloaded in the price range of ₹ 21.61-21.68 apiece, taking the combined transaction value to ₹ 1,774.89 crore.
After the share sale, Carlyle's arm CA Basque Investments' shareholding in Yes Bank declined to 4.22% from 6.84%.
Yes Bank share price has gained 18% in one month and 29% in three months. The banking stock is up 7% YTD, but has fallen 4% in the past one year. However, Yes Bank share price has gained 28% in two years and 59% in three years.
At 9:20 AM, Yes Bank share price was trading 0.96% higher at ₹ 21.05 apiece on the BSE.
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