Money & Banking

Fund-raising: YES Bank to hold EGM on February 7

Our Bureau Mumbai | Updated on January 14, 2020 Published on January 14, 2020

File photo   -  Bloomberg

YES Bank has called an extraordinary general meeting on February 7 to approve its fund-raising plans. “Notice is hereby given that an extraordinary general meeting of the members of YES Bank will be held on February 7,” it said in a regulatory filing on Tuesday.

The bank has proposed to increase the authorised share capital and consequently alter the capital clause of the memorandum of association. It seeks to increase the authorised share capital to ₹1,100 crore divided into 450 crore equity shares of ₹2 each, totalling ₹900 crore, and two crore preference shares of ₹100 each amounting to ₹200 crore. The current authorised share capital of the bank is ₹800 crore.

“It is necessary to increase the quantum of authorised share capital to facilitate capital raising through issuance of equity shares or other convertible securities... The bank is looking to enhance its core capital (CET 1), which is currently at 8.7 per cent...to a higher number above the internal risk appetite,” it said. At the EGM, the bank will also seek approval of its proposal to authorise capital raising through issuance of equity shares or other convertible securities.

The board of directors had, in a meeting on January 10, outlined a modified capital-raising plan, where it intends to raise up to ₹10,000 crore through a mixture of equity and debt.

YES Bank scrip fell 8.43 per cent and closed at ₹38.55 apiece on the BSE on Tuesday.

Published on January 14, 2020
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