Yes Bank raises $750 million via qualified institutional placement

MUMBAI: Yes Bank, that had launched an offer to raise up to $750 million (about Rs 4,900 crore) through placement of shares to institutions, is believed to have closed the offer on Friday morning after the book was subscribed more than three times. This was the second attempt by the bank to raise funds after its failed fund-raising attempt last September.
Yes Bank had announced on Thursday evening that it was launching a qualified institutional placement (QIP) at a price band of Rs 1,455-1,500 per share.According to market sources the issue is expected to be priced at Rs 1,500 per share. On Friday, Yes Bank stock on BSE closed at Rs 1,529, up nearly 1% on the day.
Motilal Oswal Investment Advisors, CLSA, BofA Merrill Lynch and IIFL were the managers to the QIP.
In September last year, through a similar QIP offer, which was reportedly being managed by as many as 11 merchant bankers, Yes Bank had tried to raise about $1 billion (about Rs 6,650 crore then). However, after failing to raise the target amount, the bank and the merchant bankers were investigated by Sebi for alleged lapses, including breach of rules relating to disclosure of information. Sebi has yet to come out with the final report on its investigation on the Yes Bank QIP.
On Thursday, the term sheet for the offer said that Motilal Oswal Investment Advisors were the global coordinator and book running lead manager for the offer. It also said that the book building process was to close at 8 am on Friday, with managers to the offer having the option to close it before that also.
A spokesperson for the bank declined to comment on the status of the offer.