Yes Bank looks to raise Rs 10,000 crore, not to consider Braich’s proposal

Yes Bank has said it will be raising up to Rs 10,000 crore in funds through a qualified institutional placement (QIP), GDR, ADR or FCCBs. It has decided not to proceed with the investment proposal by Erwin Singh Braich / SPGP Holdings.

The decisions were taken at the bank's Board meeting on Friday.

“The board at their meeting approved raising of funds up to Rs 10,000 Crore, in one or more tranches, on such terms and conditions as it may deem fit, by way of issuance of securities including but not limited through Qualified Institutions Placement (QIP)/ Global Depository Receipts (GDRs)/ American Depository Receipts (ADRs)/ Foreign Currency Convertible Bonds (FCCBs)/ or any other methods on private placement basis,” it said in a regulatory filing.

It further said that it has received an updated proposal from Braich and SGPG Holding extending the validity of its offer until January 31, 2020 for the Bank's consideration and further evaluation. “However, the Board has decided not to proceed with the offer,” it said.

“The Bank’s Board was also favourably considering the investment of $ 500 million of Citax Holdings and Citax Investment Group. The final decision on allotment was to be taken up in the next Board meeting, subject to requisite regulatory approval.

Yes Bank said that the relevant conditions precedent could not be completed as on date and so the Citax offer will be taken up during the next round.

The lender was planning to raise about $ 2 billion dollar through preferential allotment of shares. Of this amount, Canadian billionaire Braich or SPGP Holdings was interested in investing $ 1.2 billion.

COMMENT NOW