Shares of YES Bank rose as much as 5.36 per cent to Rs 27.50 on the BSE on Thursday after the bank said it has filed a red herring prospectus to raise up to Rs 15,000 crore through issuance of fresh equity shares in its further public offering (FPO). The offer will open on July 15, 2020 and close on July 17, 2020.
Earlier this week, YES Bank had received approval from the capital-raising committee (CRC) of its board of directors to raise funds through the offering.
“The bank has filed a red herring prospectus dated July 7, 2020 (RHP), in connection with the offer, with the Registrar of Companies, Maharashtra at Mumbai,” YES Bank said in a regulatory filing. YES Bank said the offer size of the FPO is Rs 15,000 crore, by way of a fresh issue of equity shares, including an employee reservation portion of up to Rs 200 crore.
Earlier, before filing its offer documents with Registrar of Companies (RoC0, The bank had revised its financials for the last three years. The bank reported a net loss of Rs 16,418 crore in financial year 2019-20 (FY20). It also made additional provisions for the period ending December 2019 of Rs 15,422 crore as several of its corporate clients defaulted on loans.
