Shares of YES Bank surged nearly 6 per cent today after board of the private lender cleared raising of Rs 8,898 crore from funds affiliated with private equity investors Carlyle and Advent International. Both the funds will potentially own 10 per cent each in the private lender.
YES Bank stock rose 5.75 per cent to Rs 15.80 against the previous close of Rs 14.94 on BSE today. YES Bank shares were trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
Stock of YES Bank has gained 19% in a year and risen 10.66% in 2022. In a month, the stock has gained 19.76%.
Total 482.41 lakh shares of the firm changed hands amounting to a turnover of Rs 73.21 crore. Market cap of the bank climbed to Rs 37,933 crore in afternoon trade.
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The amount of Rs 8,898 crore will be raised through a combination of Rs 5,100 crore in equity shares and Rs 3,800 crore through equity share warrants.
YES Bank has also raised its authorised share capital to Rs 8,200 crore from Rs 6,200 crore.
"The capital raise will further bolster the capital adequacy of YES Bank and aid the bank's medium to long term sustainable growth objectives. Once approved, this would be one of the largest private capital raises by an Indian private sector bank," the lender said.
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During the board meeting, the bank proposed to issue Rs 370 crore equity shares on a preferential basis at a price of Rs 13.78 per share and Rs 257 crore warrants convertible into equity shares at a price of Rs 14.82 per warrant to both the investors.
The lender's board has approved the convening of an extraordinary general meeting of the shareholders of the bank on August 24, 2022 to increase the authorised share capital of the bank, amendment to the Articles of Association of the Bank, appointment of R Gandhi as independent director.