YES Bank in a plan to raise around US$500 million would be selling close to 10% equity to two separate private equity investor groups. The new private lender previously looked into other programs such as global depository receipt (GDR) and qualified institutional placement (QIP) to raise capital.
Rana Kapoor, CEO and managing director of YES Bank, told news sources, "The decks are clear for our capital raising. We have received approval from the board, the shareholders, the Reserve Bank of India and Cabinet Committee on Economic Affairs to raise up to US$500 million,"
The bank recently got the Cabinet Committee on Economic Affairs' legal authorization to increase its maximum foreign holdings to 60%. The company's shareholders approved the resolution on the fund raising program in the annual general meeting last month, June. The India's newest private lender is expected to raise the funds before the year ends depending on the market condition.
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