After failed Sept bid, Yes Bank plans $650 m QIP sale

Mumbai: Six months after aborting an earlier attempt, private sector lender Yes Bank today said it will be hitting the market with qualified institutional placement (QIP) again, aiming to raise USD 650 million.

With a green-shoe option, the city-headquartered lender can raise up to USD 750 million.The floor price has been set at Rs 1,498.95 a share and can offer a discount of 5 per cent on discretion, it said in an exchange filing. However, sources said the price band is between Rs 1,455 and Rs 1,500.

The bank, which last raised capital in 2014 using the QIP route with a USD 500 million issue, had to cancel a USD 1 billion issue last September citing "extreme market volatility".

Media reports later had said the markets regulator Sebi had found that Yes Bank had violated norms governing listing obligations and disclosure rules (LODR) relating to misrepresentation of facts and adequate disclosure before it proceeded with the QIP.

The lender had changed its i-bankers to include Bank of America Merill Lynch, CLSA and IIFL but had continued with the domestic brokerage Motilal Oswal. The scrip gained 3.12 per cent to close at Rs 1,516.05 on the BSE as against a 0.56 per cent gain on the benchmark today.

The Yes Bank counter had plunged on the day of launching the issue in September. Its total capital adequacy ratio had come down to 16.9 per cent with the core tier-I at 12.2 per cent as of December 2016.