Mumbai, June 05, 2014
- Allotments made to 114 marquee global and domestic institutional investors comprising Sovereign / Long Only funds, Insurance companies, Pension Funds etc. reflecting well diversified investor base.
- Allotment of 5.35 Crore shares at Rs. 550.00 per share aggregating to USD 500 million, resulting in a dilution of 12.9% on the expanded capital base.
- Increases Total Capital Adequacy to over 18% & Tier I Capital of over 13%, ensuring that the Bank is well positioned for growth.
- Eligible Capital Funds over Rs. 15,000 crores, Shareholder funds cross Rs. 10,000 crores.
- Post issue book value of approximately Rs. 243 per share
The Capital Raising Committee, a subcommittee of the Board of YES BANK, India’s 4th largest private sector Bank today approved the allotment of 5.35 cr shares thus completing the highly successful Qualified Institutions Placement raising USD 500 million (Rs. 2942 Crores). The allotment of shares was done across 114 investors at Rs.550 per share.
On the successful completion of the equity allotment, Mr. Rana Kapoor, Managing Director & CEO said, “ YES BANK’s USD 500 mn QIP is among the FIRST significant capital raising in India after the formation of the New Government. We are delighted that 114 marquee institutional investors including sovereign funds, long only funds, insurance and pension funds etc. have reposed their investor faith in the bank. We believe that the success of our QIP signals the renewed interest global investors have in high quality companies from India. As the economy is set to recover significantly under the leadership of the New Government, this boost to our capital has ensured that YES BANK is well positioned to benefit from imminent growth opportunities in the future and achieve its vision of ‘Building the Best Quality Bank of the World in India by 2020’.”
The issue was oversubscribed over 5 times generating an aggregate worldwide demand of USD 2.5 billion. The overall allocation to foreign institutional investors is approximately 40% from USA/ Europe, 30% from Asia, and domestic insurance companies and mutual funds accounting for the balance approximate 30% ensuring a well diversified representation and demand from all significant global investors across the world. The QIP also enables a further diversification of the shareholder base YES Bank. The capital raising comes on the back of record profits of Rs. 1,617.78 Crores delivered by the Bank in FY 2013-14.
Goldman Sachs (India) Securities Private Limited, Deutsche Equities India Private Limited, HSBC Securities & Capital Markets (India) Private Limited, JM Financial Institutional Securities Limited, Motilal Oswal Investment Advisors Private Limited, and UBS Securities India Private Limited were the Book Running Lead Managers to the QIP issue. The Legal Advisors to the transaction were Linklaters, Allen & Overy, Amarchand Mangaldas & Suresh A. Shroff & Co., and Luthra & Luthra Law Offices. The Statutory Auditors were S. R. Batliboi & Co. Chartered Accountants.
Legal Disclaimer: Please note that the above press release is for information only and does not constitute an offer of sale of shares.
About YES BANK
YES BANK, India’s 4th largest private sector Bank, is the outcome of the professional & entrepreneurial commitment of its Founder, Rana Kapoor and its top management team, to establish a high quality, customer centric, service driven, private Indian Bank catering to the future businesses of India. YES BANK has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers.
YES BANK has a knowledge driven approach to banking, and a superior customer experience for its retail, corporate and emerging corporate banking clients. YES BANK is steadily evolving as the Professionals Bank of India with the long term mission of “Building the Best Quality Bank of the World in India” by 2020.
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