The bank has been trying to raise funds but is yet to decide on an investor.
Yes Bank share price gained 13.6 percent intraday on February 5, two days ahead of the shareholders' extraordinary general meeting.
The stock has been volatile for several months, losing 79 percent of value in the last one year due to asset quality concerns and failure to raise funds. It was quoting at Rs 37.40, up Rs 2.45, or 7.01 percent, on the BSE at 1150 hours.
The private-sector lender in January said an extraordinary general meeting (EGM) of the members of bank would be held on February 7 in Mumbai to increase authorised capital.
"...to increase the authorized share capital from Rs 800 crore to Rs 1,100 crore and to alter the Clause V of the Memorandum of Association of the bank relating to capital," it added.
The authorised capital of Rs 1,100 crore will be divided into 450 crore equity shares of Rs 2 each aggregating to Rs 900 crore and 2 crore preference shares of Rs 100 each aggregating to Rs 200 crore by the creation of additional 150 crore equity shares of Rs 2 each.
The members will also consider special resolution to authorise capital raising through issuance of equity shares or other convertible securities, of Rs 10,000 crore.
The board of directors, had in January, approved raising of funds upto Rs 10,000 crore, in one or more tranches, by way of issuance of securities on private placement basis.
The bank has been trying to raise funds but has not yet decided on an investor.
It had held discussions with several potential investors.
It recently decided not to proceed with the offer from Erwin Singh Braich/SPGP Holdings for a proposed investment in the bank, but the board is willing to favourably consider the offer of $500 million of Citax Holdings and Citax Investment Group in next board meeting.
It has been selling stakes in companies it lent money to, including Sical Logistics, and Rosa Power Supply Company, the subsidiary of Reliance Power.
Yes Bank acquired more than 10 percent stake in Sical Logistics and nearly 30 percent in Reliance Power subsidiary by invocation of pledged shares after their default on payments.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
