Yes Bank to launch QIP Thursday, looks to raise $600 mn, say sources

Yes Bank, India’s fifth largest bank, may launch a USD 600 million qualified institutional placement (QIP) today, sources told CNBC-TV18. It could be priced around Rs 1,499 per share based on Securities and Exchange Board of India (SEBI)-calculated average.

The bank had called off a QIP offer for USD 1 billion in September last year. While market speculated poor response, the company cited confusion over QIP guidelines reiterating that the response to the QIP was solid. The price band of the issue for which Goldman Sachs, Motilal and CLSA were the merchant bankers, was Rs 1,410-1,350 per share.

The current issue may come with a greenshoe option of USD 150 million.

Commenting on the news, Prakash Diwan of Altmount Capital Management said, "There will be appetite because of the pricing."

Diwan said banking is where size is going to matter. "Yes Bank will need the cash to shore up its balance sheet."

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