The Cabinet Committee on Economic Affairs had approved Yes Bank’s proposal in May this year to increase foreign investment limit to 74 per cent, entailing FDI inflows of Dollars 1 billion (about Rs 6,637 crore).
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“The QIP guidelines for some unbelievable reason require the QIP to be kept open for three days, even after it is oversubscribed”, Kapoor said.
A spokesperson for Yes Bank declined to comment on the withdrawal of the offer.
Yes Bank and some of its private sector competitors are increasing their loan books at double the pace of state-run rivals, which have been burdened by a surge in bad loans.
Ahead of the announcement, the bank’s shares closed down 2.7 percent at 1,401.55 rupees.
Yes Bank is reportedly selling shares worth Rs. 6,600 crore (about $1 billion) to institutional investors at Rs.1, 410 per share. The bank had said the capital raising committee of its Board of Directors would consider and determine the price for equity shares of the bank to be issued in the QIP, in accordance with the relevant provisions of SEBI regulations and Companies Act.
Yes Bank came under sharp selloff for a third straight session on Friday, with the stock falling over 6 per cent at the day’s low.
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The total capital adequacy ratio during this period stood at 15.5 per cent with Tier 1 (core capital) coming in at 10.3 per cent. Goldman Sachs, CLSA, Edelweiss, Motilal Oswal, Religare and HSBC are among the lead bankers to the issue. It was estimated that following the QIP, the Tier 1 capital will cross 15 per cent.
