Yes Bank's Bold Move: Rs 16,000 Crore Fundraising Plan Unveiled

Yes Bank is set to garner Rs 16,000 crore by blending equity and debt initiatives, a strategic move approved by its board this Tuesday. This step is poised to bolster business expansion through issuing equity securities capped at Rs 7,500 crore, ensuring less than 10 percent dilution.

Moreover, the board's nod extends to raising Rs 8,500 crore via eligible debt securities, either in Indian or foreign currency, again adhering to the dilution threshold. The amendments in the bank's Articles of Association, linked to a share purchase agreement with SMBC and SBI, await the Reserve Bank of India's and shareholder's consent.

The recently planned equity alterations will also empower SMBC to nominate two directors and SBI one, aligning with their current holdings. With SBI and other lenders selling a combined 20 percent Yes Bank stake to SMBC, this forms India's largest cross-border banking investment.

(With inputs from agencies.)