Published on 31/10/2019 1:28:24 PM | Source: HT Media

Yes Bank gets binding offer of $1.2 billion from a global investor

Posted in Stock Market| #Yes Bank Ltd #Banking Sector #Stock Market

Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel 

Download Telegram App before Joining the Channel

Private sector lender Yes Bank today informed stock exchanges that it has received a binding offer from a global investor for an investment of $1.2 billion in the bank through fresh issuance of equity shares. It is subject to regulatory approvals/conditions as well as bank's board and shareholders approvals, the bank said. Yes Bank shares surged as much as 35% to ₹76.65 after the announcement.

The lender also said that it continues to be in advanced discussions with other global and domestic investors for fund raising.

Yes Bank had earlier this year raised around $270 million through a qualified institutional placement (QIP).

Raising more capital will be crucial for Yes Bank to achieve regulatory balance between capital adequacy rules and business growth.

CEO Ravneet Gill had earlier said the bank was in talks with private equity firms, strategic investors and family offices to raise additional capital.

Yes Bank shares are up over 80% so far this month after various news reports had suggested that the lender is in talks with investors to raise funds. But year to date, the stock is still down over 50%.

Mint had on 6th October reported that Yes Bank was in talks with top technology companies, including Microsoft Corp, to induct one of them as a strategic shareholder.