look news india
An important financial announcement for Yes Bank has come to light. The Board of Directors (Board of Directors) of the bank issued shares (equity) and various loan securities (Debt Securities) 16,000 crore rupees (About $ 1.91 billion US $)) has given its approval to raising capital. The decision is considered an important step to meet the bank’s future growth plans and regulatory norms.
How will this huge fund be raised?
Yes Bank is planning to raise this amount within the next 12 months in one or more stages. Many methods can be used for this funding, including:
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Qualified Institutional Placement – QIP: To issue shares to institutional investors.
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Rights Issue: Giving the right to buy additional shares to existing shareholders.
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Follow-on Public Offer-FPO: Issuing new shares by the already listed company.
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Preference allotment: To issue shares to certain special investors.
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Global Depository Receipts (GDRS) or American Depository Rece from: To raise capital from international markets.
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Convertible Securities: Such securities that can later be converted into shares.
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Non-Convertible Debentures-NCDs: Taking loans from direct investors.
Background and future path:
The decision has come at a time when Yes Bank has been continuously strengthening its financial position since the financial reorganization and rescue (Belout) scheme launched by the Reserve Bank of India (RBI) in March 2020. This permission to raise capital will help the bank to further strengthen its balance sheet, expand operations and strengthen its position in India’s competitive banking sector.
The impact of this news was also seen on the bank shares, where investors took it as a positive step. This step will be helpful to Yes Bank in proceeding on the path of development and providing better services to its customers in future.
