New Delhi: Struggling with financial crisis, Yes Bank of the private sector has announced to raise capital of Rs 15,000 crore through a follow-on public offer (FPO). The issue will open on 15 July and will close on 17 July. The base rate for this has been fixed at Rs 12 per share. The maximum rate for FPOs will be Rs 13 per share. In this way, the floor price has been kept 6 times and the cap price 6.5 times for a share of 2 rupees. Bidders will be able to bid for a minimum of one thousand shares. After this it can increase to multiple of thousand. The bank also announced a special rebate of Re 1 per share for eligible employees.
Prashant Kumar, the chief executive and managing director of the bank, today said that the capital of 15,000 crore coming from the FPO would be sufficient to meet the two-year growth needs of the bank. He said that to reduce costs the number of employees is being limited. SBI recovered Yes Bank from the crisis in March. The bank is selling the stock at about half the price of its stock on Friday. SBI holds a 49 per cent stake in the bank and its Central Board has approved investments in Yes Bank’s FPO up to a maximum of Rs 1,760 crore.
