Yes Bank raised $225 million (about Rs 1,034 crore) through private placement of shares to institutional investors. "The issue of $225 million, was oversubscribed on strong demand from foreign institutional investors and domestic mutual funds," said Yes Bank in a statement. The bank will issue 3.84 crores equity shares at Rs 269.5 per equity share. The issuance of fresh equity will be equivalent to 11.33% of the expanded capital base. The share price of the company closed at Rs 245.6 on Thursday.
The fund infusion will increases the capital adequacy to over 20% and Tier I Capital Adequacy to over 13%, based on assets as on December 31, 2009. Total shareholders' fund will touch Rs 3,000 crore and the total capital fund Rs 5,070 crore after the QIP and an additional placement of Rs 300 crore of Tier II debt on January 22, 2010, the statement said.
In the third quarter of 2009-10, the banks earned a net profit of Rs 125.9 crore. Its credit grew at 71.1% in the quarter as against the same period last year. ‘‘The fresh capital infusion will be further augment the capital adequacy, and enhance the long-term resources of the bank. With this capital raising, Yes Bank's total capital fund has crossed Rs 5,000 crore,". Morgan Stanley, CLSA and Goldman Sachs were the joint global coordinates and book running lead managers to the QIP issue.
Saturday, January 30, 2010
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