Yes Bank denies capital raising plans

yesbankYes Bank, one of India’s newest private sector banks, said it has no immediate plans of raising capital and denied media reports to the contrary.

The bank, in a statement, said it has not appointed any merchant bankers to find buyers for any new securities or shares.

Yes Bank was responding to media reports that the company will sell $1 bln worth of its shares to qualified institutional investors within the next 30 days.

Yes Bank said its investors, at its annual general meeting held in June, did approve of plans to raise $1 bln over the next one year, but the bank has no firm plans on when or how to do this.

“The Banks’ equity capital raising plan remains unchanged in accordance with the Press Release dated June 7,” the company added.

It also clarified that there was no authorization from the shareholders for a ‘rights issue’, and the authorization was only for selling shares to institutional investors.

Shares of Yes Bank had declined during trade today on the news that it was about to kick off a $1 bln fund-raising effort.