Yes Bank on Friday set the price band for its follow-on public offering (FPO) at Rs 12 to Rs 13 per share. Shares of Yes Bank ended at Rs 25.6, down four per cent. The FPO is priced at nearly half the current market price.
Yes Bank is looking to raise Rs 15,000 crore through the FPO. The fund raising is aimed at “ensuring adequate capital to support growth and expansion, including enhancing our bank’s solvency and capital adequacy ratio.”
The lender will end up issuing between 11.54 billion and 12.5 billion fresh equity shares in the FPO. Yes Bank’s current equity base stands at 12.55 billion shares. The FPO will lead to around 50 per cent dilution in the current equity base.
The FPO will open on July 15 and close on July 17. The bank will allot shares to anchor investors on July 14.
In March, eight investors led by State Bank of India (SBI) had invested Rs 10,000 crore in Yes Bank as part of its revival plan.
Yes Bank FPO is managed by eight investment banks led by Kotak Mahindra Bank, SBI Capital markets, Axis Capital and Citibank.