Yes Bank Raises Rs 500m Through Qualified Institutional Placement

Published: 08th June 2014 02:01 AM  |   Last Updated: 08th June 2014 02:01 AM   |  A+A-


HYDERABAD: Yes Bank Ltd, the country’s fourth-largest private sector bank, raised $500 million (`2,942 crore) via a qualified institutional placement (QIP) last week.  A QIP is nothing but a securities issue that allows an Indian-listed company to raise capital from the domestic market without submitting any pre-issue filings to market regulators, unlike an initial public offer (IPO) or a follow-on public offer (FPO).

With this additional capital, the total shareholders’ funds stand at Rs 10,033 crore, while the total capital funds aggregate to Rs 15,154 crore. The capital raising comes on the back of record profits of Rs 1,617.78 crore delivered by the bank in FY 2013-14.

Following the successful completion of the QIP, Yes Bank said its Capital Raising Committee during its meeting held on June 5 approved the issue and allotted 53,492,272 equity shares to eligible qualified institutional buyers at the issue price of `550 per equity share.

This is at a discount of Rs 0.04 per equity share on the floor price of Rs 550.04 per equity share, aggregating to approximately Rs 2942.07 crore under the SEBI Regulations and Section 42 of the Companies Act, 2013 (including the rules made thereunder).

“Yes Bank has once again demonstrated its ability to augment capital backed by its robust financial performance across economic cycles. This reinforces the strong faith of high-quality international and domestic institutional investors in the business and financial model of Yes Bank,” said managing director & CEO Rana Kapoor. He added that the capital raising had been consummated to further augment the bank’s core tier I capital base/capital adequacy, besides enhancing its long-term resources and ensuring that the bank was positioned to benefit from significant growth opportunities to accelerate with the improving political and economic environment in India.

According to the bank, the QIP opened with a share sale of $500 million and was oversubscribed five-fold, generating an aggregate worldwide demand of $2.5 billion. The overall allocation to foreign institutional investors (FIIs) is approximately 40 per cent from US/Europe, 30 per cent from Asia and domestic insurance companies and mutual funds comprising the remaining approximate 30 per cent ensuring a well diversified representation and demand from significant global investors.

Goldman Sachs (India) Securities Private Ltd, Deutsche Equities India Private Ltd, HSBC Securities & Capital Markets (India) Private Ltd, JM Financial Institutional Securities Limited, Motilal Oswal Investment Advisors Private Ltd and UBS Securities India Private Ltd were the book running lead managers for the QIP issue.

“The capital book running lead managers–GS, Deutsche, HSBC, UBS, JM and Motilal Oswal–did an exemplary and well-timed global transaction of significant magnitude for Yes Bank, and potentially, a catalyst for future global capital raisings from India. GS was instrumental in bringing the largest anchor investor to this global capital raising transaction,” said Kapoor.

The legal advisors for the transaction were Linklaters, Allen & Overy, Amarchand Mangaldas & Suresh A Shroff & Co., and Luthra & Luthra Law Offices. The statutory auditors were SR Batliboi & Co.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp