Shares of YES Bank fell 9 per cent in the intraday trade Friday after the private bank announced the opening of the qualified institutional placement (QIP) issue at a floor price of Rs 87.9 per equity share.
Shares of YES Bank fell 9 per cent in the intraday trade Friday after the private bank announced the opening of the qualified institutional placement (QIP) issue at a floor price of Rs 87.9 per equity share. In the regulatory filing, YES Bank said that the capital raising committee of the bank’s board of directors on Thursday 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 in an exchange filing on Thursday. YES Bank shares were trading at Rs 82.20, down 6.95, or 7.80 per cent on BSE at the time of reporting.
The launch of QIP is a part of the bank’s plan to raise $1 billion (over Rs 7,000 crore) which among others employs other instruments such as preferential issue, global depositary receipt/American depositary receipt, foreign currency convertible bonds or any other methods on a private placement basis. The private lender plans to raise nearly Rs 2,000 crore ($ 285 million) through QIP. JM Financial, Motilal Oswal and CLSA are managers to the sale.
Meanwhile, in Q1FY20, YES Bank posted a drop in net profit to 90.97 per cent on account of lower other income and higher provisioning. The bank posted a net profit Rs 113.76 crore for the three months ended 30 June compared to Rs 1,260.36 crore in the year-ago period. Other income, which includes core fee income, dropped 24.88 per cent to Rs 1,272.66 crore in the three months from Rs 1,694.14 crore in the year ago period.