Private sector Yes Bank said it has filed a red herring prospectus to raise up to Rs 15,000 crore by issuing fresh equity shares through a follow-on public offer (FPO). The offering will open on 15 July 2020 and close on 17 July 2020.
Approval was received this week
Earlier this week, Yes Bank received approval to raise funds through an offer from the Capital Raising Committee (CRC) of its board of directors. Yes Bank told the stock market that the bank filed a Red Herring Prospectus (RRP) on July 7, 2020 before the Registrar of Companies in Maharashtra. 200 crore shares reserved for employees.Yes Bank said the FPO offering is worth Rs 15,000 crore. Under this, fresh shares will be issued and shares worth Rs 200 crore will be reserved for employees.
SBI will invest 1,760 crores
State Bank of India (SBI) said in a statement that the Executive Committee of its Central Board on Wednesday approved a maximum investment of Rs 1,760 crore in Yes Bank’s FPO. The government approved a bailout scheme for Yes Bank on 13 March. Yes Bank received about Rs 10,000 crore from eight financial institutions under the scheme. This included Rs 6,050 crore received from SBI.
Highest SBI stake in Yes Bank
Other banks and financial institutions, including SBI, hold around 66.94 per cent in Yes Bank. Of this, SBI holds the largest share of 48.21 per cent, ICICI Bank 7.95 per cent and Axis Bank 4.78 per cent.