Yes Bank is gearing up for a significant financial boost, with its board approving plans to raise a total of ₹16,000 crore. This substantial capital infusion will come from a mix of equity and debt securities.
The bank aims to raise ₹7,500 crore through the issuance of eligible equity securities. This move is designed to strengthen its equity base, with a built-in safeguard: the dilution from this issuance, including any conversion of convertible debt, will not exceed 10%.
In parallel, Yes Bank will raise ₹8,500 crore via eligible debt securities. These can be issued in either Indian or foreign currency, offering flexibility. Similar to the equity raise, the dilution from any conversion of these debt securities, along with other equity issuances, will also be capped at 10%.
These fundraising initiatives are, of course, contingent on shareholder approval and various regulatory and statutory clearances.
Beyond the fundraising, Yes Bank’s board also gave the nod to amendments to its Articles of Association. These changes are a direct result of the share purchase agreement between Yes Bank, Sumitomo Mitsui Banking Corporation (SMBC), and State Bank of India. Notably, Japanese banking giant SMBC is set to acquire a 20% stake in Yes Bank, a move that will likely bring significant strategic benefits.