YES Bank has received the government’s approval to raise Rs 2,650 crore through qualified institutional placement (QIP) from overseas.
The private sector lender proposes to increase the foreign equity participation upto 60 per cent through a QIP of its equity shares to eligible non-resident investors.
Qualified institutional placement is a capital raising tool for listed Indian companies.
Finance Minister P Chidambaram said the approval, given by the Cabinet Committee on Economic Affairs (CCEA) on Thursday, would “result in foreign investment amounting to about Rs 2,650 crore being received in the country”.
The proposal was cleared by the Foreign Investment Promotion Board (FIPB) in April, but since the investment was of more than Rs 1,200 crore, a CCEA nod was required.
Earlier, the bank had got its board approval to raise up to $500 million.
YES Bank posted 33.2 per cent jump in net profit at Rs 362.15 crore for the fourth quarter ended March 31, 2013. Total income of the bank rose to Rs 2,667.03 crore in January-March quarter as compared to Rs 2,051.4 crore in the same period of previous fiscal. Yes Bank’s shares were trading at Rs 452.35 at BSE, up 1.9 per cent from Thursday’s close. (Source: BT)