Yes Bank approves price band for Rs 15,000 crore FPO

The capital raising committee of the board of directors at Yes Bank on Friday approved the floor price at Rs 12 per equity share and cap price at Rs 13 per equity share regarding the follow-on public offer (FPO).

It also approved a discount of Re 1 per equity share for eligible employees of the bank bidding in employee reservation portion. The minimum bid lot is of 1,000 equity shares and in the multiples of 1,000 equity shares thereafter.

Another meeting of the capital raising committee is scheduled to be held on July 14 for allocation of equity shares to successful anchor investors pursuant to the offer and for determination of the anchor investor allocation price.

The private sector lender is raising Rs 15,000 crore through the FPO in a bid to strengthening its balance sheet. It 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.

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.

-ANI

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