Yes Bank launches ₹2,000 crore QIP
1 min read . Updated: 08 Aug 2019, 06:43 PM IST- Yes Bank has set a floor price of Rs87.9 apiece for the share sale
- Yes Bank plans to use the funds to meet its capital requirements
Mumbai: Private sector lender Yes Bank Ltd on Thursday said that it has launched a qualified institutional placement (QIP) offering to capital from institutional investors, the lender said in a stock exchange filing.
A QIP is a capital-raising tool through which listed companies can sell equity shares, fully and partly convertible debentures, or any securities other than warrants that are convertible into stocks, to a qualified institutional buyer.
Yes Bank is looking to raise around Rs2,000 crore through the institutional share sale, said a person aware of the development, requesting anonymity.
The lender has set a floor price of Rs87.9 apiece for the share sale. On Thursday, Yes Bank shares closed at Rs89.15, up 2.65% on the BSE.
The lender plans to use the funds to meet its capital requirements.
“We intend to use the Net Proceeds for meeting our capital requirements under Basel III norms, ensuring adequate capital to support growth and expansion, including enhancing our solvency and capital adequacy ratio, refinancing of our Tier 1 and Tier 2 bonds and for general corporate purposes," the bank said in its filings with stock exchanges.
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