Private sector lender Yes Bank has managed to get shareholder approval to hike authorised share cap to Rs 1,100 crore from Rs 800 crore. Shareholders have also approved raising up to Rs 10,000 crore via equity share issuance and/or convertible securities.

The bank says that it is raising this capital to meet the growing requirements of its expanding business, to invest in technology, human capital and infrastructure, and because it also envisages significant lending opportunities.

The decision, more importantly, is taken to meet the RBI’s minimum capital requirement norm which for the bank has eroded significantly.

Yes Bank appointed Anshu Jain-headed global investment bank Cantor Fitzgerald and two domestic entities for its fundraising plans, sources said on Wednesday. Other merchant bankers appointed by the capital-starved lender include IDFC Securities and Ambit Capital, they said.

On January 10, the bank's board had decided that Canadian investor Erwin Singh Braich's USD 1.2-billion offer will not be pursued further and also hinted that a USD 500-million offer from Citax Holdings and Citax Investment Group, which was being favourably considered, is facing headwinds.

The scrip gained 7.58 percent to close at Rs 37.60 apiece on the BSE.

First Published:Feb 7, 2020 8:46 PM IST