YES Bank shares climb 12% as board okays fund raising plan

NEW DELHI: Shares of YES Bank climbed over 12 per cent in Friday’s trade after the board of cash-starved private sector lender on Thursday approved a proposal to raise Rs 5,000 crore by way of share-sale, including qualified institutions and rights issue.

With this, the new board also came to the force with Prashant Kumar formally becoming the MD and CEO of YES Bank.

This fundraising will be over and above Rs 10,000 crore cleared in February 7, 2020 board meeting.

The board at its meeting has approved subject to receipt of requisite approvals, raising of funds for an additional amount aggregating up to Rs 5,000 crore, YES Bank said in a regulatory filing.

The fund may be raised in one or more tranches by “way of issuance of securities but not limited to through a qualified institutions placement/ public issue, rights issue, global depository receipts, American depository receipts, foreign currency convertible bonds or any other permissible mode," it said.

So, in aggregate the fundraising cannot exceed Rs 15,000 crore, it added.

The RBI had earlier sacked YES Bank management and placed it under an administrator on the evening of March 5 with a 30-day moratorium which was later on curtailed to nearly two weeks.

The shares of the lender closed 0.94 per cent lower at Rs 26.40 on BSE.