As per SEBI guidelines, there should be a gap at least six months before a company can raise a second QIP. The bank had earlier raised Rs 1,930 crore via a QIP in August
Yes Bank is seeking exemption from the Securities and Exchange Board of India's (SEBI) six-month rule for its Rs 2,000 crore qualified institutional placement (QIP) scheduled for January, reports The Economic Times.
As per SEBI guidelines, there should be a gap at least six months before a company can raise a second QIP. The bank had earlier raised Rs 1,930 crore via a QIP in August.
Moneycontrol could not independently verify the report.
It is technically impossible for Yes Bank to have go in for another QIP before February 2020. However, its management has sought an exemption from SEBI as it plans to raise funds in January, the article quotes sources as saying.
The pricing may also be an issue for the bank, which intends to have a floor price of Rs 87.9 per share, since the company’s share price has significantly dropped over the last few weeks, sources said.
Investors may not prefer to buy Yes Bank's shares at such a high price as the current market price is way below the projected floor price, the report stated.At 09:35 hours, the counter was trading at Rs 46.90 on the Bombay Stock Exchange (BSE).Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.