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Yes Bank's Rs 300 cr IPO by June

March 01, 2005 18:49 IST
Yes Bank will visit the capital market with an initial public offering to raise over Rs 300 crore (Rs 3 billion) and tier-II capital bond issue of Rs 100 crore (Rs 1 billion) before June to fund business growth plans, including branch network.

The bank would issue fresh 7 crore (70 million) shares of Rs 10 each at price to be decided by the book building process.

The public issue would be made in the first quarter of the next fiscal, Bank's chairman Ashok Kapur said on Tuesday. Post-IPO, the shareholding of promoters would reduce from 52 per cent to about 40 per cent, he said.

Rana Kapoor, managing director of the private sector bank said the current equity capital base is Rs 200 crore (Rs 2 bilion) and the bank needs additional funds to strengthen capital adequacy and build infrastructure, including branch network.

The target is to raise about Rs 300 crore (Rs 3 billion) through the IPO. The bank has appointed DSP Merrill Lynch Ltd and Enam Financial as book running lead managers for the offer, Kapoor said.

It has signed a letter of intent with a multilateral agency for raising Rs 100 crore through issuance of tier-II bonds, he said.

The capital infusion would help to hold business portfolio of over Rs 6,000 crore (Rs 60 billion) with capital adequacy of 12 per cent in the start-up phase, he said.

The bank expects to close the current financial year with balance sheet size of Rs 1,250 crore (Rs 12.5 billion) with asset base close to Rs 900 crore (Rs 9 billion), he added.

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