YES Bank said on Friday it has raised Rs 1,930 crore through the qualified institutional placement (QIP) route which opened on August 8 and closed on August 14.
The bank allotted 23.1 crore equity shares of face value of Rs 2 each to eligible qualified institutional buyers (QIBs) at Rs 83.55 per equity share in accordance with the pricing formula provided under Regulation 176(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2018.
The QIP increases the bank’s total capital adequacy ratio to 16.2 per cent, tier I ratio to 11.3% and core equity tier I ratio to 8.6%, ensuring that the bank remains capitalised well above the regulatory limits.
The issue saw a strong response from foreign as well as from domestic QIBs. The overall allocation to foreign institutional investors is about 34% from the United States and Europe, 40% from Asia and the balance from domestic insurance companies and mutual funds. highlighting a well-diversified representation and demand from across the world.
The QIP also enables a further diversification of the shareholder base of Yes Bank, it said in a statement.
“We are delighted with how our fundraise has been supported by marquee global and domestic investors. We maximised the size to the extent of the (up to) 10% dilution limit currently approved by our shareholders,” said Managing Director and CEO Ravneet Gill.
“The success of the QIP is extremely satisfying given the strong global and domestic headwinds and a credit environment beset with challenges. We see this as a strong endorsement by the investor community of the inherent strengths of the Yes Bank franchise and its future growth prospects,” he added.
CLSA India, JM Financial Limited, Motilal Oswal Investment Advisors, Prime Securities and Yes Securities India were the global coordinators and book running lead managers to the QIP issue. The legal advisors to the transaction were AZB & Partners, Linklaters Singapore and L & L Partners (formerly known as Luthra & Luthra Law Offices). The statutory auditors were BSR & Co LLP.
(With ANI inputs)