Private sector lender YES Bank on Thursday said it has filed paper for its proposed follow-on public offer, through which the lender is aiming to raise Rs 15,000 crore. The FPO issue will be open from July 15 to July 17 and bidding by anchor investors will be held on July 14.
An FPO is a process by which a company already listed in an exchange issues new shares to investors or existing shareholders.
In a regulatory filing, YES Bank said, “The bank has filed a red herring prospectus dated July 7, in connection with the offer, with the registrar of companies.”
YES Bank has reserved a portion of up to Rs 200 crore for employees in the forthcoming FPO.
Shares of YES Bank traded nearly 2.50 per cent higher at Rs 26.75 in the early trade, while the benchmark BSE Sensex was up 0.36 per cent at 36,458.
In another update, State Bank of India on Wednesday said its executive committee of the central board has given approval for a maximum investment of up to Rs 1,760 crore in FPO of YES Bank.
The announcement came after YES Bank on Tuesday said it has received approval from the Capital Raising Committee of the Board of Directors of the Bank (CRC) for raising funds by a way of FPO.
“Pursuant to the intimation given by Yes Bank to the stock exchanges on July 7, 2020 on the issue of raising capital, the executive committee of the central board (ECCB) of State Bank of India at its meeting held today on July 8, 2020 has accorded approval for a maximum investment of up to Rs 1,760 crore in the Further Public Offering (FPO) of Yes Bank Ltd,” SBI said in a filing to the exchanges.