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Yes Bank raises $500M through QIP

Yes Bank Ltd, which launched a share sale on Thursday to raise as much as $500 million (Rs 2,945 crore) from institutional investors in order to bolster its capital position, closed the oversubscribed issue.

The lender had put a indicative price band of Rs 531 to Rs 550 each for the qualified institutional placement (QIP), as per its term sheet.

UBS was the joint book running lead manager for this QIP, which was originally scheduled to close on June 2. The fresh shares will be issued by June 9.

The shares offered in this placement will not be entitled to FY2014 dividends.

Yes Bank’s stock closed at Rs 549.9 per share, down 1.99 per cent on BSE in a weak Mumbai market. It was up 1.75 per cent and quoting at Rs 559.5 a share in mid-day trades in a flat market on Friday.

The fresh share issue would dilute the equity base by around 13 per cent.

In a statement to the stock exchange on April 23, the bank had said it planned to raise up to $500 million in one or more tranches. The issue can be in the form of a QIP or issue of either American Depository Receipts or Global Depository Receipts, it said.

The bank posted a consolidated net profit of Rs 1,611.2 crore for the year ended March 31, 2014 as compared to Rs 1,300.6 crore for the year ended March 31, 2013. The bank’s total income has increased from Rs 9,551.4 crore to Rs 11,702.9 crore in the same period.

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