YES Bank raises $500m through QIP

YES Bank, India’s 4th largest private sector bank has announced that it has successfully closed a qualified institutions placement (QIP) to raise $500 million (Rs.2,942 crores).
The bank will issue 5.35 crore shares at Rs.550.00 per share, a premium to the previous day’s closing price (NSE – RS.548.15). The placement increases the overall capital adequacy to over 18 percent and Tier I Capital of around 13 percent. The additional capital now brings the total shareholders’ funds to Rs.10,033 crores, and the total capital funds to Rs 15,154 crores pursuant to the QIP.
The issue opened with share sale of $ 500 million and was oversubscribed over 5 times generating an aggregate worldwide demand of $2.5 billion.
The overall allocation to foreign institutional investors is approximately 40 percent from the United States/Europe, 30 percent from Asia, and domestic insurance companies and mutual funds accounting for the balance approximate 30 percent ensuring a well-diversified representation and demand from all significant global investors across the world. The capital raising comes on the back of record profits of Rs.1,617.78 crores delivered by the bank in FY 2013-2014.
On the successful completion of the equity issuance, Rana Kapoor, MD & CEO, said: “YES Bank has once again demonstrated its ability to augment capital backed by its robust financial performance across economic cycles. This reinforces the strong faith of high quality international and domestic institutional investors in the business and financial model of YES Bank. This capital raising has been consummated to further augment our core Tier I capital base/capital adequacy, and enhance the long-term resources of YES Bank ensuring that the bank is extremely well positioned to benefit from significant growth opportunities that will accelerate with the improving political and economic environment in India.”