New Delhi: Yes Bank’s shares are again in focus as the Mumbai-based private lender has approved a proposal to raise up to Rs.16,000 crore through a mix of equity and debt instruments, according to a regulatory filing on June 3. The move is aimed at optimising the bank’s capital structure and funding its growth plans.
This fundraising plan includes issuing equity securities worth Rs.7,500 crore and debt worth Rs.8,500 crore in both Indian and foreign currencies. This would result in a dilution of the total equity of the company of less than 10%, the filing explained.
This comes about a month after Japan-based SMBC acquired a controlling stake in the bank, buying out the stakes held by SBI and other lenders. Additionally, US-based Carlyle group has also offloaded a 2.62% stake in the bank through open market transactions; its affiliate arm CA Basque Investments, is now left with a 4.22% stake in the bank.
The bank’s board has also approved amending the company’s Articles of Association (AOA) to incorporate the rights of SMBC and SBI as per their ownership thresholds- 10% for SMBC and 5% for SBI. This move is aimed at safeguarding all the shareholders’ rights after the changes in ownership, along with facilitating operational efficiencies.
Yes Bank has reported a 63.3% year-on-year rise in net profit for Q4 FY25, even as net interest income rose by 5.7% to Rs.2,276.3 crore in the same period. Yes Bank, which was on the brink of collapse in 2020 has seen a remarkable turnaround lately, partly due to SBI’s efforts to rescue the bank. SMBC had been in talks with SBI to invest in the bank for months, even as the RBI has granted it special exemptions to protect its interests.
