InvestorQ : How does Yes Bank plan to raise Rs.10,000 crore in the tough market situation?
Debbie Mascarenhas made post

How does Yes Bank plan to raise Rs.10,000 crore in the tough market situation?

Answer
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Crowny Pinto answered.
3 months ago


Yes Bank is looking at share sale via qualified institutional placement (QIP) or rights issue or a follow on public offering (FPO) as per reports which have not been confirmed yet. As of now Yes Bank has only appointed the investment bankers and they will decided the further course of action when they meet on 05 June. For any secondary fund raising, the stock market price is a key factor and that is not too favorable for Yes Bank. However, a QIP placement would be the quickest method although it would depend on the appetite for such a troubled bank. Just to comply with RBI mandates, Yes bank requires Rs.4,000 crore of equity infusion in the current fiscal year. Currently SBI holds over 48% in Yes Bank and the future viability of Yes Bank would depend on how quickly it is able to shore up capital base.