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    YES Bank shares can make you rich! It's the top performer on Sensex

    YES Bank shares can make you rich! It's the top performer on Sensex

    YES Bank shares can make you rich! It's the top performer on Sensex
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    By Pranati Deva   IST (Updated)

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    Shares of YES Bank rose as much as 6.5 percent to Rs 81.55 on Friday after the lender said that it has raised Rs 1,930 crore through qualified institutional placement (QIP). The lender also said that that it was planning to raise additional funds over the next 12-18 months after the successful QIP.

    Shares of YES Bank rose as much as 6.5 percent to Rs 81.55 in intraday deals on Friday after the lender said that it has raised Rs 1,930 crore through qualified institutional placement (QIP). The lender also said that that it was planning to raise additional funds over the next 12-18 months after the successful QIP.
    The stock ended 3.8 percent higher at Rs 79.45  as compared to a 0.1 percent (39 points) rise in Sensex.
    The bank allotted 23.1 crores equity shares to eligible qualified institutional buyers (QIBs) at Rs 83.55 per equity share. The QIP opened on August 08, 2019 and closed on August 14, 2019.
    The QIP increases the bank's total capital adequacy ratio to 16.2 percent, tier I ratio to 11.3 percent and core equity tier I ratio to 8.6 percent, ensuring that the bank remains capitalized well above the regulatory limits, it said in a regulatory filing.
    The bank offered 23.10 crore shares aggregating to 9.96 percent of the share capital as against a limit of 10 percent of pre-issue share capital as approved by the shareholders, it said.
    "The capital raised is effectively growth capital. The pre-provisioning operating profit is sufficient for the provision that the bank needs to take and do not need any incremental buffer, so all capital raised will be used for growth," Ravneet Gill, MD & CEO of YES Bank, told CNBC-TV18.
    The issue saw a good response from foreign as well as domestic investors. The overall allocation to foreign institutional investors stood at 34 percent from USA/Europe, 40 percent from Asia, and balance from domestic insurance companies and mutual funds, the company said in an exchange filing.
     
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