Yes Bank Shares Surge to Record on Plan to Raise $500 MillionAnto Antony
Yes Bank Ltd., India’s best performing bank share in the past year, jumped to a record after saying that it plans to raise as much as $500 million selling shares and global depository receipts.
The Mumbai-based lender plans to offer shares to large investors and may sell receipts in Europe, Rana Kapoor, chief executive officer and managing director of the bank, said in a telephone interview today. Yes Bank jumped 2.8 percent to 542.55 rupees at the close in Mumbai.
Selling global depository receipts will give overseas investors, who have been barred from buying the company’s shares after their stake crossed the 49 percent limit, an opportunity to invest in the company, Dolly Parmar, an analyst at IFCI Financial Services Ltd., said by phone.
“Larger part of these funds will be raised by sale of global depository receipts as it will give more headroom to foreign investors,” Kapoor said. Yes Bank will seek shareholders permission for its plans in June, he said.