In its EGM on February 7, Yes Bank's shareholders have given their approval to increase authorized share capital from Rs. 800 crore to Rs. 1100 crore. Also, at the same time, approval has been give to raise up to Rs. 10000 crore through issuance of share capital and convertible securities.
The decision to raise capital is by far to meet the minimum capital requirement of RBI that for the bank has depleted tremendously.
The raised funds will be put to meet the expansion plans of the lender, human capital, infrastructure, technology and further as it expects paramount lending opportunities.
On Wednesday, sources suggested that the private lender has roped in Anshu Jain who is at heading global investment bank Cantor Fitzgerald and 2 other domestic companies for its fund raising. Other merchant bankers appointed include Ambit Capital and IDFC Securities, added the sources.
On Friday, the scrip of Yes Bank ended higher by 7.58% to Rs. 37.60 per share on the BSE.