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Last Updated : Aug 16, 2019 10:48 AM IST | Source: Moneycontrol.com

Yes Bank climbs 4% on plans to raise additional $600 mil

Yes Bank closed the QIP on August 14 totalling Rs 1,930.4 crore at an issue price of Rs 83.55 per share.

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Shares of Yes Bank climbed 4 percent intraday on August 16 after media reports suggested that the company is planning to raise an additional $600 million after the success of its qualified institutional placement (QIP) that helped it mop up $270 million.

Since the dilution of shareholding will be much larger in the proposed upcoming capital issuance than this one, the bank is looking to bring in strategic investors who could support the bank’s growth, Mint reported, quoting sources.

Yes Bank closed the qualified institutional placement (QIP) on August 14 totalling Rs 1,930.4 crore at an issue price of Rs 83.55 per share (including a share premium of Rs 81.55 per share).

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The issue price is at a discount of roughly 4.95 percent or around Rs 4.35 per share to the floor price of Rs 87.90 per share, the bank said in a release to the exchange.

The lender has been grappling with mounting bad loans and shrinking profit while witnessing a gradual fall in its share prices.

The June quarter results of the lender showed its profit plunged 91 percent YoY on a nearly three-fold increase in provisions and weak asset quality. Lower other income, NII and operating income also dented profitability.

The scrip, however, pared gains and traded 1.63 percent, or Rs 1.25, up at Rs 77.80 round 1005 hours on the BSE.

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First Published on Aug 16, 2019 10:48 am
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