Yes Bank's Rs 15,000 crore FPO to open on 15th July

Private sector lender Yes Bank said on Thursday it has filed documents for its follow-on public offer (FPO) to raise Rs 15,000 crore in a bid to strengthening its balance sheet.

The FPO issue will be open from July 15 to July 17 and bidding by anchor investors will be held on July 14. An FPO is a process by which a company already listed in an exchange issues new shares to investors or existing shareholders.

"The bank has filed a red herring prospectus dated July 7 in connection with the offer with the registrar of companies," it said in regulatory filings at stock exchanges.

Yes Bank has reserved a portion of up to Rs 200 crore for employees in the forthcoming FPO.

The announcement came after the bank said earlier this week that it has received approval from the capital raising committee of the board of directors for raising funds by a way of FPO.

Several banks are boosting their balance sheets in anticipation of bad debts as the coronavirus pandemic pulls down economy and businesses.

According to rating agency ICRA's estimates, Yes Bank requires equity infusion of Rs 9,000 crore to 13,000 crores to meet regulatory capital requirements, including capital conservation buffers.

In early-March, the Reserve Bank of India (RBI) had imposed a moratorium on Yes Bank, restricting withdrawals to Rs 50,000 per depositor in view of its poor financial health due to bad loans. The government notified Yes Bank Ltd Reconstruction Scheme 2020 on March 13.

Key stakeholders, including the RBI, have put in place various measures to bolster the bank's liquidity. The scheme involved equity infusion of Rs 10,000 crore by eight entities, mainly banks led by State Bank of India, and the reconstitution of Yes Bank's board. 

-ANI

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