YES Bank is selling its shares worth $500 million to bolster its balance sheet. The bank is selling shares in an indicative price band of about Rs 530 ($9.00) to Rs 550 each. However, the details of the transaction are not made public yet. This sale will lead to dilution of 10-12% in promoter shareholding. According to bank officials involved in the qualified institutional placement (QIP) said Goldman Sachs, Deutsche Bank, UBS, HSBC, JM Financial and Motilal Oswal Financial Services are the lead arrangers for the issue. Rana Kapoor and Madhu Kapur and her family are the company’s largest individual promoters. Kapoor owns 5.55% and Madhu Kapur and her family own 9.74%. The bank had said in its annual report that it planned to raise additional capital aggregating up to $500 million or its rupee equivalent by way of placement of shares to qualified institutional buyers through QIP and/or private placement in international markets through ADRs/GDRs or foreign currency convertible bonds or issue of fully-convertible debentures/partly-convertible debentures, preference shares convertible into equity shares, and/or any other financial instruments or securities convertible into equity share.
