Proposed $1 billion QIP will be achieved sooner than later, said Yes Bank

On Friday, Yes Bank - the fifth largest private lender in India, opened up about the circumstances that forced the bank to defer $1 billion qualified institutional placement (QIP) for the time being. 

Yes bank on September 07, declared that it has received board of directors nod for capital raising upto $1 billion, inter alia by way of QIP.  This was suppose to be the largest raising from QIP in the current financial year. 

After facing heat from investors in the bank's stock on Indian exchange, the Yes Bank decided to postpone the proposed QIP on September 08. 

Yesterday, the bank said,"Given the aforesaid events Yes Bank, as a client has been a victum of market cicumstances."

Yes Bank's decisions between September 7 - September 8. 

Firstly, this would be the third QIP that, Yes Bank planned to raise. For raising of $1 billion via QIP, was first obtained at the board meeting held on April, 22, 2015, subject to shareholders final approval, which was subsequently approved by the shareholders' at the annual general meeting (AGM) on June 06, 2015. 

From the previous two successful QIPs,Yes Bank raised around $225 million in January 2010 and $500 million in May 2014.

Pursuant to the above, Yes Bank appointed 12 merchant bankers for the proposed QIP, and filed for the QIP on September 07,2016 with the exchange. The pre-placement document was filed with stock exchanges on that particular day itself. 

Among the lead managers of Yes Bank for the offer as QIP were Goldman Sachs (India) Securities Pvt. Ltd, Motilal Oswal Investment Advisors Pvt. Ltd and CLSA India. 

Early morning of September 08, 2016, Yes Bank informed of the consolidated expression of interest (EOIs) from investors upto $1.04 billion, inclusive of $758 million of confirmed commitments and balance by way of verbal commitments, demonstrating investor appetite for full subscription of the issue. 

In the early trading sessions on September 08, there was heightened market volatility in the bank's stock. 

Following the market conditions the bank decided to delay the QIP and informed about it to BSE and NSE.

However, Yes Bank is confident in this QIP and plans to finish it sooner. 

Yes Bank said in a statement yesterday," On the basis of the demonstrated performance and track record of the bank, robust investors appetite and also considering its success from two past QIPs, the bank is confident that the proposed QIP will be consummated sooner or later."