Yes Bank raises $500 million

Midsize private sector lender Yes Bank on Friday said it raised $500 million through a qualified institutional placement with domestic and global investors.

The city-based lender, among the last of the banks to start operations, issued 5.35 crore new shares to investors, it said in a statement. The offer, which was oversubscribed five times, was the first after the new government assumed charge on May 26 and came amid the upbeat sentiment created by Narendra Modi's victory in the Lok Sabha elections.

The issue was priced at Rs 550 per share compared with yesterday's close of Rs 548.15 a piece. Following the share sale, the bank's total share base will expand by almost 13 per cent and the stake of existing shareholders will be diluted by the same proportion.

"This capital raising has been done to further augment our core tier-I capital base/capital adequacy, and enhance the long-term resources," MD and CEO Rana Kapoor said.

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