Monday, 30th October 2017

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Yes Bank sets QIP floor price

The mobilisation comes at a time the private lender needs growth capital

  • Published 9.08.19, 2:28 AM
  • Updated 9.08.19, 2:28 AM
  • a min read
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In a communication to the bourses on Thursday, Yes Bank said the capital raising committee of its board of directors authorised the opening of the issue. (Shutterstock)

Yes Bank on Thursday announced the opening of the qualified institutional placement (QIP) issue at a floor price of Rs 87.90 per equity share.

The mobilisation comes at a time the private lender needs capital to fund its growth. Yes Bank has been in the news in recent times due to concerns over its asset quality. The bank had seen a 91 per cent drop in net profit during the first quarter of this fiscal as provisions rose.

The asset quality of the bank deteriorated with the percentage of gross non-performing assets (NPAs) rising to 5.01 per cent against 1.31 per cent in the year-ago period.

In a communication to the bourses on Thursday, Yes Bank said the capital raising committee of its board of directors authorised the opening of the issue.

The committee “approved the floor price for the issue being Rs 87.90 per equity share, based on the pricing formula... and the committee may, at its discretion, offer a discount of not more than 5 per cent on the floor price”, the bank said.

The QIP is part of Yes Bank’s $1-billion (over Rs 7,000 crore) fund-raising plan, which among others employs instruments such as preferential issue, global depositary receipt/American depositary receipt, foreign currency convertible bonds or any other methods on a private placement basis. The Yes Bank stock closed at Rs 89.15 on the BSE, a gain of 2.65 per cent over the previous close.

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