Yes Bank raises Rs 4,906.65 crore via QIP issue

Yes Bank

Private lender, Yes Bank, raised Rs 4,906.65 crore through its qualified institutional placement (QIP). It allotted 3.27 crore shares at a price of Rs 1,500 per share.

The fundraising exercise has resulted in a dilution of 7.2 percent on the expanded capital base. It has also increased the capital adequacy ratio to 20 percent, while Tier-I capital has increased to 15.2 percent.

“The QIP will significantly boost our capital adequacy and ensure that the bank is well positioned to capitalise on the opportunities provided by the re-invigorated economic environment in India,” said Rana Kapoor, managing director and CEO of the bank, in a statement.

The overall allocation split is approximately 60% to international long only funds, 20% to domestic long only funds, and 20% to international hedge funds, the statement added

CLSA India, DSP Merrill Lynch, IIFL Holdings and Motilal Oswal Investment Advisors were the global co-ordinators and book running lead managers to the QIP issue. Meanwhile, Shardul Amarchand Mangaldas & Co, Allen & Overy and Luthra & Luthra Law Offices were the legal advisors, the statement said.