The RPF was requested in early April for advisers to raise at least Rs 5,000 crore.
Aiming to raise another Rs 5,000 crore, Yes Bank has issued a request for proposal (RFP) seeking advisers for the fundraising. The private lender is in talks with three investment banks for the same, Mint has reported.
The RPF was requested in early April to raise at least Rs 5,000 crore and up to Rs 15,000 crore in equity. Yes Bank is in talks with Axis Capital, Bank of America and Citi for the new fund raising round, a source told the newspaper.
This is in line with the Yes Bank boards’ increased fundraising limit to Rs 15,000 crore from earlier Rs 10,000 crore.
“Formal appointment of advisors will happen over the next few weeks. The resolution is to raise anywhere up to Rs 15,000 crore in fresh equity. So, depending on the market conditions and feedback from advisors, it could end up raising more than Rs 5,000 crore," the newspaper quoted the source as saying.
A second source said the funding would likely come from markets via a rights issue or a qualified institutional placement (QIP). “The idea is to bring in new institutional investors into the bank. Even with a rights issue, the existing investors who came to rescue the bank are expected to give up part or all of their share entitlement in favour of new investors," this source added.
In March, a clutch of banks led by the State Bank of India (SBI) invested a combined Rs 10,000 crore to keep the troubled lender floating.
SBI now holds 48.2 percent stake in the bank, with the majority investment of Rs 6,050 crore. Other investors include ICICI Bank, HDFC, Kotak Mahindra Bank, IDFC First Bank, Bandhan Bank and Federal Bank.First Anniversary Offer: Subscribe to Moneycontrol PRO’s annual plan for ₹1/- per day for the first year and claim exclusive benefits worth ₹20,000. Coupon code: PRO365
