Mumbai: Yes Bank has sought shareholder approval to raise Rs 10,000 crore even as it rejected Canadian businessman Erwin Singh Braichs offer to invest $1.2 billion.
It will also consider a proposed $500 million investment by Citax Holdings in a fresh round of fundraising later.In late November, the bank had said it plans to raise a total of $2 billion on a preferential allotment basis from a total of eight investors which included institutional investors and family offices.
Braichs SPGP Holdings had expressed willingness to invest $1.2 billion or 60 per cent of the total $2 billion commitments received by the bank with a term sheet extended to December 31.However, Braich had since given an updated offer which the bank decided not to go ahead with.
The bank has received an updated proposal from the investor extending the validity of its offer until January 31, 2020 for the banks consideration and further evaluation.
However, the board has decided not to proceed with the offer, Yes Bank said.The banks board is willing to favourably consider the second largest offer of $500 million from Citax Holdings and Citax Investment Group but since the relevant conditions precedent could not be completed as on datethe Citax offer will be taken up during the next round, the bank said.The inconclusive board meeting has resulted in some uncertainty with regard to the banks fun d raising plans.
It is unclear whether the other investors detailed in November will still be willing to invest.The banks board has approved raising up to 10,000 crore, in one or more tranches, through either a qualified institutional placement, global or American depository receipts, foreign currency convertible bonds or other methods on private placement basis.
It will convene an extra-ordinary general meeting to get shareholders approval.Yes Banks capital adequacy at the end of September was 8.60 per cent , just above the mandatory 8 per cent level.
In August 2019 it raised $275 million by selling shares to a bunch of domestic and foreign portfolio investors.It posted a loss of 600 crore in the September quarter due to a one-off tax hit of 709 crore due to change in the corporate tax rate regime.
Excluding this one-time hit, the adjusted profit was 109 crore.
The banks gross bad loan ratio rose to 7.4 per cent from 1.60 per cent in September 2018 and 5.01 per cent in the quarter ended June 2019.